Along the Consumption Function,an Increase in Disposable Income Will

question 58

Multiple Choice

Along the consumption function,an increase in disposable income will:

• A)cause autonomous consumption to rise.
• B)shift the consumption function upward.
• C)cause a corresponding downward shift of the saving function.
• D)cause a movement along the given consumption function.
• E)shift the consumption function downward.

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Definitions:

Ungenerous Person

An individual who is not willing to give or share things, especially money, freely or in a way that shows kindness.

Subjective Utility

An individual's perceived value or satisfaction obtained from choosing a particular action, often used in economic and psychological models of decision making.

Expected Value

Is the predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Service Contract

A legally binding agreement between two or more parties where one agrees to provide a specified service to the other for a payment.