An Increase in Expected Future Disposable Income ________ Consumption Expenditure

question 69

Multiple Choice

An increase in expected future disposable income ________ consumption expenditure and ________.

• A)increases;results in a movement upward along the consumption function
• B)decreases;shifts the consumption function upward
• C)decreases;shifts the consumption function downward
• D)increases;shifts the consumption function upward
• E)increases;shifts the consumption function downward

---

Definitions:

Efficiency

The ability to accomplish a task or produce an outcome with minimum waste of time, effort, or resources.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Profitability

A measure of the efficiency and financial success of a business, indicated by the ratio of profits generated to the resources used.

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting one's expectations, desires, or needs.