Which of the Following Will Shift the Consumption Function Upward

question 140

Multiple Choice

Which of the following will shift the consumption function upward?

• A)An increase in consumer wealth.
• B)An increase in the interest rate.
• C)An increase in personal income taxes.
• D)A decrease in the MPC.
• E)An increase in disposable income.

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Definitions:

NAV

Net Asset Value; the total value of a fund's assets minus its liabilities, usually expressed as a price per share.

Wilshire 5000 Index

A market-capitalization-weighted index of the market value of all US-based stocks actively traded in the United States.

Mutual Fund

An investment vehicle comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

S&P 500 Index

A stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.