Which of the Following Will Shift the Consumption Function Upward

question 39

Multiple Choice

Which of the following will shift the consumption function upward?

• A) a tax increase
• B) expectations of inflation
• C) higher disposable income
• D) lower wealth holdings

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Definitions:

Ultimatum Game

A behavioral economics game in which a mutually anonymous pair of players interact to determine how an amount of money is to be split. The first player suggests a division. The second player either accepts that proposal (in which case the split is made accordingly) or rejects it (in which case neither player gets anything).

Dictator Game

An experimental game in economics where one player, the "dictator," determines how to divide an endowment (such as a sum of money) between themselves and the second player, studying social preferences like altruism.

Total Control

A situation where all aspects of a process or system are under the direct authority and regulation of a single entity.

Dictator Game

A behavioral economic experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.