The Average Value of Stock Shares Falls by 10 Percent

question 273

Multiple Choice

The average value of stock shares falls by 10 percent. Other things being equal, we would expect

• A) an increase in the marginal propensity to consume.
• B) a decrease in the marginal propensity to consume.
• C) a shift up of the consumption function.
• D) a shift down of the consumption function.

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Definitions:

Beliefs

Beliefs are convictions or acceptances that something exists or is true, especially without proof, and influence behaviors and attitudes.

Disillusioned Hindu

A Hindu individual who has become disenchanted or lost faith in certain aspects of Hinduism, possibly due to personal experiences or philosophical considerations.

Reap What You Sow

A proverbial saying meaning that actions have consequences, and people will eventually face the results of their actions.

Nirvana

The state of spiritual perfection.