The Consumption Function Assumes That

question 8

Multiple Choice

The consumption function assumes that:

• A)only disposable income affects consumption.
• B)only the price level affects consumption.
• C)many factors other than disposable income affect consumption,and each is allowed to vary along the consumption function.
• D)factors other than disposable income affect consumption,but those are held constant along the consumption function.
• E)only consumer expectations affect consumption.

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Definitions:

Future Wages

Earnings that an individual is expected to receive from their employment in the upcoming period.

Statutes

Written laws passed by a legislative body at the national or state level.

Gratuitous Assignment

The act of transferring rights or interests from one party to another without requiring any consideration or payment in return.

Revocable

Capable of being revoked, withdrawn, or cancelled, often referring to trusts, licenses, or permissions.