Which of the following would be most likely to shift the consumption function downward?

A. A stock market crash
B. A price level decrease
C. Increased corporate profits
D. A stock market boom

Answer: A

Economics

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The economy tends to be more stable with a __________ LM curve causing interest rates to be rather __________ to shifts in the IS curve

A) steeper; sensitive B) steeper; insensitive C) flatter; sensitive D) flatter; insensitive

Economics

Which of the following is least likely to be considered a capital input?

A) a sewing machine B) a tractor C) a telephone D) a ten dollar bill

Economics