A Shift in the Consumption Function

question 79

Multiple Choice

A shift in the consumption function:

• A) is based on the marginal propensity to consume.
• B) can be caused by a change in the price level.
• C) can be caused by a change in GDP.
• D) cannot be caused by a change in expectations.

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Definitions:

Exchange

The act of trading goods, services, or currencies among parties.

Bakery

A bakery is a business establishment that produces and sells flour-based food baked in an oven such as bread, cookies, cakes, pastries, and pies.

Exchange

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded.

Paying Cashier

A cashier responsible for handling cash transactions and payments within a retail or other business environment.