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The Figure Given Below Shows the Consumption Functions of an Economy.?Figure

question 64

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The figure given below shows the consumption functions of an economy.?Figure 9.4
The figure given below shows the consumption functions of an economy.?Figure 9.4    -Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion? A)  The equilibrium will move from point A to point F. B)  The equilibrium will move from point A to point C. C)  There will be a new equilibrium disposable income at point G. D)  The equilibrium will remain at point A. E)  There will be a new equilibrium disposable income at point E.
-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?


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