An Upward Shift of the Consumption Function Might Be Caused

question 123

Multiple Choice

An upward shift of the consumption function might be caused by:

• A)an increase in disposable income.
• B)a decrease in disposable income.
• C)a decrease in the price level.
• D)a decrease in household wealth.
• E)an increase in the interest rate.

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Definitions:

Reduction In Risk

A decrease in the uncertainty associated with the return on an investment or the outcome of an action, often pursued through diversification or insurance.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Primary Stock

Shares issued directly by a company to investors as a means of raising capital, often through an initial public offering (IPO).