A decrease in the price level will most likely have what effect on the consumption function?

a. It will shift upward.
b. It will shift downward.
c. It will cause movement downward along the function.
d. It will cause movement upward along the function.

a

Economics

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Government deficits of one generation cannot affect the standard of living of the next generation

a. True b. False Indicate whether the statement is true or false

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As the marginal propensity to consume (MPC) increases, the spending multiplier:

a. increases. b. decreases. c. remains constant. d. becomes indefinable.

Economics