There Is a Movement Along the Consumption Function If There

question 397

Multiple Choice

There is a movement along the consumption function if there is

• A) an increase in autonomous consumption.
• B) a decrease in the real interest rate.
• C) an increase in the expected future income.
• D) an increase in disposable income.

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Definitions:

International Exchange Ratio

The rate at which the goods and services of one country can be traded for those of another.

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can produce given its available resources and technology.

Comparative Advantage

The proficiency of either a person, a company, or a country in crafting a good or providing a service, which comes at a lesser opportunity cost than that offered by rival parties.

Domestic Demand

The total demand for goods and services within a country's borders.