Which of the Following Would Be Most Likely to Shift

question 33

Multiple Choice

Which of the following would be most likely to shift the consumption function downward?

• A)a stock market crash 
• B)a price level decrease 
• C)increased corporate profits 
• D)a stock market boom

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Definitions:

Income

Money that an individual or business receives, typically as payment for goods or services or through investments.

Consumer Equilibrium

Consumer Equilibrium is the state where a consumer has balanced their expenditures across different goods to maximize total utility given their budget constraint.

Utility

In economics, the satisfaction or benefit derived from consuming a product or service.

Consumer Equilibrium

The point at which the amount of a product demanded by consumers equals the amount supplied, leading to a stable market price.