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:

Depressive Episodes

A period characterized by persistent feelings of sadness, loss of interest, and other emotional and physical symptoms, indicating depression.

Artificial Laughter

Laughter that is produced by artificial means, often sounding forced or unnatural compared to genuine laughter.

Perceptual Set

A psychological framework that influences how a person perceives and interprets sensory information based on expectations, biases, and experiences.

Mental Predisposition

An inclination or tendency to think in a particular way, often beforehand or without complete information.