Which of the Following Would Not Shift the Consumption Function

question 94

Multiple Choice

Which of the following would not shift the consumption function downward?

• A)a decline in business profits
• B)a decline in wealth
• C)an increase in the price level
• D)an increase in the interest rate
• E)a more pessimistic outlook about the future

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Definitions:

Implied Warranty

A legal assumption that a product will perform as expected according to the sale terms without being explicitly stated.

Agency Relationship

A fiduciary connection between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in dealings with third parties.

Occasion Photography

The professional service of capturing photos for specific events or occasions, such as weddings, birthdays, or corporate events.

Contract

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.