Which One of the Following Will Shift the Consumption Function

question 95

Multiple Choice

Which one of the following will shift the consumption function upward?

• A) higher interest rates
• B) an increase in real assets
• C) expectations of future economic growth
• D) lower capacity utilization rates

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Definitions:

Interaction Effects

In statistical models, the combined effect of two or more independent variables on a dependent variable that is different from their individual effects.

Factorial Research

A type of experimental research design that involves multiple independent variables and examines their main effects as well as the interaction effects between them.

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effect on dependent variables.

Combinations

Choosing elements from a broader group without regard to the sequence in which they are selected.