What Is the Effect on the Consumption Function of a Decrease

question 117

Multiple Choice

What is the effect on the consumption function of a decrease in disposable income?

• A)The consumption function shifts upward.
• B)The consumption function shifts downward.
• C)There is movement upward along the consumption function.
• D)There is movement downward along the consumption function.
• E)The consumption function becomes flatter.

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Definitions:

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A type of long-term memory that involves the storage of general knowledge and facts about the world.