If the Consumption Function Shifts Downward, Which of the Following

question 76

Multiple Choice

If the consumption function shifts downward, which of the following is the most likely cause?

• A)Consumers become more optimistic.
• B)The price level increased.
• C)Consumers' incomes increase.
• D)Real interest rates decrease.

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Definitions:

Inductive Step

A crucial part of mathematical proof in inductive reasoning, where one shows that if a property holds for one case, then it also holds for the next case.

Inductive Generalizations

The process of inferring general principles from specific observations.

Positive Instances

Examples that conform to a specific rule or hypothesis, supporting its validity.

Premises

The statements or propositions upon which an argument is based or from which conclusions are drawn.