An Increase in Expected Future Income

question 182

Multiple Choice

An increase in expected future income

• A) decreases consumption expenditure.
• B) increases saving.
• C) shifts the consumption function upward.
• D) shifts the saving function upward.

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Definitions:

Edict of Nantes

A 1598 decree issued by Henry IV of France, granting substantial religious and civil rights to the Huguenots (French Protestants).

Protestants

Followers of any of the Christian denominations that broke away from the Roman Catholic Church during the Protestant Reformation.

Absolute Monarchy

A form of government where the monarch holds supreme authority, unrestricted by laws or constitution; their word or decree is law.

Louis XIII

King of France from 1610 to 1643, known for strengthening the French monarchy and establishing absolute monarchy as the form of government.