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:

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.

Sales Volume

The quantity of products or services sold by a company within a specific period, often used to measure business performance.