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The Figure Given Below Shows the Consumption Functions of an Economy

question 4

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The figure given below shows the consumption functions of an economy. Figure 9.4 The figure given below shows the consumption functions of an economy. Figure 9.4 Refer to Figure 9.4.Which of the following could explain a downward shift of the consumption function from C<sub>1</sub> <sub> </sub>to C<sub>3</sub>? A) An increase in household wealth B) A decrease in the proportion of young people in the population C) An increase in the size of the population D) A decrease in consumer confidence E) An autonomous decrease in saving Refer to Figure 9.4.Which of the following could explain a downward shift of the consumption function from C1 to C3?

Definitions:

Enforcement Costs

The expenses associated with ensuring compliance with laws, regulations, and agreements, including monitoring and penalties.

Compliance Costs

Expenses that businesses incur to adhere to laws, regulations, and standards.

Power To Tax

The legal authority granted to governments to impose charges on individuals and corporations to fund public services and goods.

Government

The structure or mechanism by which a society or country is managed and controlled.

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