If Disposable Income Falls by $40 Billion and Consumption Falls

question 210

Multiple Choice

If disposable income falls by $40 billion and consumption falls by $30 billion, then the slope of the consumption function is

• A)1.33.
• B)0.75.
• C)0.4.
• D)0.3.
• E)0.25.

Comprehend the role of prices in reflecting costs and signaling changes in market equilibrium.

Understand the concept of equilibrium in different markets and the factors that lead to changes in equilibrium conditions.

Analyze the impact of consumer preferences on market equilibrium in terms of price and quantity.

Recognize the role of capital flow in markets and its impact on industry profitability and equilibrium.

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