Because of Recent Corporate Downsizing, Chuck Loses His Job

question 204

Multiple Choice

Because of recent corporate downsizing, Chuck loses his job.The most likely effect on his consumption function is a(n)

• A)movement downward along the function.
• B)shift upward of the function.
• C)shift downward of the function.
• D)increase in consumption expenditures.

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Definitions:

Shifted

Refers to a change in position or direction, often used in economics to describe movements in supply or demand curves.

Sales Tax

A tax imposed on sales of goods and services, typically calculated as a percentage of the purchase price and collected by the retailer.

Progressive Tax System

A taxation system where the tax rate increases as the taxable amount or income increases, meaning higher-income individuals pay a larger percentage of their income in taxes than lower-income individuals.