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Following Is Consumption Schedules for Three Private Closed Economies

question 67

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Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Refer to the data below. Suppose the consumption is increased by $2 billion in each of the three economies. This change could have been caused by: Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Refer to the data below. Suppose the consumption is increased by $2 billion in each of the three economies. This change could have been caused by:   A)  a decrease in consumer wealth. B)  expectations of higher future income. C)  an increase in taxation. D)  an increase in saving.


Definitions:

Fixed Cost

Costs that remain constant in total regardless of changes in the level of activity or volume of production.

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