If the real interest rate increases, there is
A) an upward shift of the consumption function.
B) a movement downward along consumption function.
C) a change in the slope of the consumption function.
D) a movement upward along the consumption function.
E) a downward shift of the consumption function.
E
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The marginal cost curve is
A) downward sloping to reflect the bowed out PPF. B) downward sloping as marginal benefits increase. C) upward sloping because marginal cost falls as more of a good or service is produced. D) upward sloping to reflect the increasing opportunity cost of producing one more unit. E) U-shaped to reflect the bowed out PPF.
Hector has $2,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is 20. The clothing and food pairs in Hector's choice set include ________ units of clothing and ________ units of food.
A. 40; 100 B. 16; 60 C. 100; 100 D. 30; 50