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

Understand the impact and responses to economic crises and conflicts during the early 21st century.

Explain the evolution of American foreign policy in the aftermath of September 11, 2001.

Identify the consequences of U.S. military interventions in Afghanistan and Iraq.

Examine changes in social policies and cultural conflicts within the United States from 2000 to 2010.

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Definitions:

Economies of Scope

Cost advantages that enterprises obtain due to a broad scope of operations or the variety of products and services offered.

Cost Function

A mathematical relation that describes how the total cost of producing a good or service varies with the level of output.

Diseconomies of Scope

The phenomenon where a company’s costs increase as it produces more varied types of products or services, due to inefficiencies.

Returns to Scale

The rate at which output increases as inputs are increased proportionately.