If consumers' expectations about future income are very optimistic, then we should expect
a. the consumption function to shift downward.
b. consumers to move up along the consumption function.
c. the consumption function to shift upward.
d. consumers to move down along the consumption function.
c
Economics
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The best example of a transfer payment would be ___.
A. govenment investment B. government purchases C. government giving funds to the unemployed D. the government paying its workers
Economics
According to the permanent income hypothesis, a temporary and relatively small increase in income would
A. cause an increase in consumption and saving by the same amount. B. cause a decrease in consumption and saving by the same amount. C. cause no change in consumption. D. cause a large increase in consumption.
Economics