An Upward Shift in the Consumption Function

question 45

Multiple Choice

An upward shift in the consumption function

• A) results if people decide they want to save more.
• B) has the same kind of multiplier effect as an increase in investment.
• C) occurs if people's incomes rise.
• D) raises the average propensity to save.
• E) raises the marginal propensity to consume.

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Definitions:

Positive Application

The act of applying a concept, principle, or method in a way that results in beneficial or favorable outcomes.

Organizational Conflict

A disagreement or discord arising within an organization due to differing interests, goals, or values among members.

Conflict Forms

refer to the different types or nature of disagreements and disputes that can arise within an organization, impacting relationships and productivity.

Constructive

relates to behaviors or processes that are helpful, positive, and aimed at building or improving something.