Suppose the Consumption Function Equaled C = 2

question 160

Multiple Choice

Suppose the consumption function equaled C = 2 + .7.If taxes and government purchases each decreased by $10 billion,the expenditure line would

• A)shift down by $20 billion.
• B)shift up by $7 billion.
• C)shift up by $20 billion.
• D)shift down by $3 billion.
• E)not change.

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Definitions:

Competitive

Characterized by or involving a contest, rivalry, or competition.

Anger and Hostility

Emotional states where anger involves upset or displeasure, and hostility often includes aggressive attitudes and behaviors.

Coronary Risk

The likelihood or risk factors associated with the development of coronary heart disease, a condition characterized by reduced blood flow to the heart muscle.

Type A Personality

A personality style marked by a strong competitive orientation, impatience and urgency, and anger and hostility.