Which of the Following Would Shift the Consumption Function Upward

question 59

Multiple Choice

Which of the following would shift the consumption function upward?

• A)a decrease in disposable income
• B)an increase in disposable income
• C)an increase in the interest rate
• D)expectations of lower future prices
• E)an increase in net wealth

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Definitions:

Sampling Distribution

The distribution of probabilities for a certain statistic, obtained from a random sample.

Sample Statistic

A numerical measure that describes an aspect of a sample of a population.

Probability Samples

Samples chosen in such a way that every member of the population has a known, non-zero chance of being included.

Convenience Sampling

A sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.