If Consumers' Expectations About Future Income Are Very Optimistic, Then

question 138

Multiple Choice

If consumers' expectations about future income are very optimistic, then we should expect

• A)the consumption function to shift downward.
• B)consumers to move up along the consumption function.
• C)the consumption function to shift upward.
• D)consumers to move down along the consumption function.

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Definitions:

Telus Mobility

A Canadian wireless network operator and a division of Telus Communications offering mobile voice, text, and data services.

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, often measured as the percentage increase in real gross domestic product (GDP).

Neoclassical School

An economic theory that emphasizes the role of supply and demand in determining the price and quantity of goods and services offered in a market, focusing on rational behavior and equilibrium.