The Slope of the Consumption Function Can Be Determined by Dividing

question 42

Multiple Choice

The slope of the consumption function can be determined by dividing the change in

• A) real consumption spending by the change in real disposable income
• B) nominal spending by the change in nominal disposable income
• C) real disposable income by the change in real consumption spending
• D) nominal disposable income by the change in nominal consumption spending
• E) total consumption spending by the change in autonomous consumption spending

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Definitions:

Orion Constellation

A prominent constellation located on the celestial equator, easily identifiable by its belt of three stars and often associated with mythology across various cultures.

Tigris And Euphrates

Twin rivers that flow through modern Iraq, forming a major river system that was the cradle of ancient Mesopotamian civilization.

Nebuchadnezzar II

An ancient Babylonian king who ruled c. 605–562 BC, famous for his conquests and the construction projects in Babylon, including the Hanging Gardens.

Ishtar Gate

The eighth gate of the inner city of Babylon, constructed in about 575 BC by order of King Nebuchadnezzar II, famed for its blue glazed tiles and representations of animals.