What Is the Effect on the Consumption Function of a Decrease

question 117

Multiple Choice

What is the effect on the consumption function of a decrease in disposable income?

• A)The consumption function shifts upward.
• B)The consumption function shifts downward.
• C)There is movement upward along the consumption function.
• D)There is movement downward along the consumption function.
• E)The consumption function becomes flatter.

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Definitions:

Disjuncts

The separate elements or options in a disjunctive proposition, any of which can make the entire proposition true.

Disjunction

A logical operation yielding a true value if at least one of its propositions is true.

Biconditional

A logical relationship between two statements where both or neither are true; often phrased as "if and only if".

Component

A part or element of a larger whole, especially a part of a machine or system.