Which of the Following Would Cause the Consumption Function to Shift

question 189

Multiple Choice

Which of the following would cause the consumption function to shift downward?

• A) A decrease in taxes
• B) A decrease in interest rates
• C) Consumers become more pessimistic about the future
• D) Consumers become more optimistic about the future
• E) None of the above

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Definitions:

Accept Help

The willingness to receive assistance or support from others, which can be critical for overcoming challenges or achieving objectives.

Develop Resilience

The process of building the capacity to recover quickly from difficulties or adapt to challenging circumstances.

Resilient

The ability to quickly recover from difficulties; toughness or the capacity to bounce back from adversity.

Give Up

The act of stopping an attempt or ceasing to engage in an activity or effort, often due to perceived difficulty or lack of success.