________ Shifts the Consumption Function Upward

question 172

Multiple Choice

________ shifts the consumption function upward.

• A) A decrease in the marginal propensity to consume
• B) An increase in the real interest rate
• C) An increase in expected future disposable income
• D) An increase in disposable income
• E) An increase in the price level

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Definitions:

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition within an industry.

Degree of Concentration

A measure of the extent to which a small number of firms or entities dominate in a particular market or industry.

American Economy

The economic system of the United States, characterized by a mixed economy with private and public enterprise.

Covert Collusion

A secret agreement between firms to fix prices, limit production, or divide markets, which is illegal and against competition laws.