The Consumption Function Is Based on the Assumption That as Real

question 112

Multiple Choice

The consumption function is based on the assumption that as real disposable income rises,aggregate desired consumption

• A)will fall and desired saving will rise.
• B)will rise and desired saving will fall.
• C)and desired saving will both rise.
• D)remains constant and desired saving will rise.
• E)remains constant and desired saving will fall.

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Definitions:

Start-Up Costs

The initial expenditures that are required to establish a business, including expenses such as licenses, marketing, inventory, and property leases.

Sales Revenue

The income received from selling goods or services over a certain period of time.

Regulatory Agency

An organization established by the government to enforce laws, rules, and regulations within specific industries.

First-Mover Advantage

The benefit gained by a company that first introduces a product or service to the market, often achieving significant brand recognition and customer loyalty.