An Upward Shift in the Consumption Function, Other Things Being

question 9

Multiple Choice

An upward shift in the consumption function, other things being equal, could be caused by households:

• A) becoming optimistic about the state of the economy.
• B) becoming pessimistic about the state of the economy.
• C) expecting future income and wealth to decline.
• D) experiencing a tax increase.

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Definitions:

Receptor Cells

Specialized cells that respond to specific chemical or physical stimuli in the body and transmit signals to nerves.

Umami

One of the five basic tastes, described as savory or meaty, and associated with foods containing glutamate.

Meaty Taste

Describes a flavor profile reminiscent of meat, often rich and savory, referred to as umami in taste descriptions.

Taste Sensation

The perception derived from the chemical senses as food or other substances interact with taste receptors in the mouth.