The Consumption Function Shows How ________

question 57

Multiple Choice

The consumption function shows how ________.

• A)the marginal propensity to consume varies with disposable income
• B)income varies as a result of changes in consumption
• C)consumption depends on the decision to save
• D)all of the above
• E)none of the above

---

Definitions:

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service.

Expected Revenue

The forecasted amount of money that a business anticipates receiving over a certain period, based on projected sales volume and unit price.

Probability

A gauge for the chances of an event taking place, measured by numbers from 0 to 1.

English Auction

A type of auction in which the price ascends and participants bid openly against one another, with the item going to the highest bidder.