The consumption function
A. is a relationship between annual consumption and annual disposable income in an economy.
B. will shift upward if aggregate household wealth declines.
C. implies that annual consumption in an economy will be zero if disposable income is zero.
D. is a flat line with zero slope.
A. is a relationship between annual consumption and annual disposable income in an economy.
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Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?
A) open market operation B) discount policy C) required reserve ratio D) the Fed's liquidity provision
The egalitarian view of equity would lead to:
A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above