According to the Consumption Function, If the Level of Real

question 301

Multiple Choice

According to the consumption function, if the level of real disposable income increases, then

• A) both the levels of consumption and savings will increase.
• B) the level of consumption will increase but the level of saving will decrease.
• C) the level of consumption will decrease but the level of saving will increase.
• D) both the levels of consumption and savings will decrease.

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Definitions:

Minor

A person under the age of legal adulthood, which varies by jurisdiction but is typically 18 years old in many countries.

Adjudicated

Having undergone a legal process by which an official decision or judgment is made regarding a dispute.

Mentally Incompetent

A legal status referring to an individual's lack of capacity to make decisions due to mental disability or illness.

Disaffirmance

The legal right of a party to reject or void a contract or agreement, often due to factors like minority status or duress.