Pat Robertson, a TV evangelist and former Republican Party candidate for president, once said that “debt is an affront to God,” so good Christians should not spend beyond their incomes. Indeed, Robertson wants Christians to save more. If more Americans, Christians as well as others, took his message seriously, how would we represent the result using a Keynesian macroeconomic model?
A. A downward movement along the consumption function
B. An upward movement along the consumption function
C. A downward shift of the consumption function
D. An upward shift of the consumption function
Answer: C
You might also like to view...
The relative flexibility of the United States labor market explains why ________ in the United States than in Europe
A) income inequality is greater B) real wages grow more slowly C) unemployment is lower D) all of the above
It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d