An upward shift in the consumption function, other things being equal, could be caused by households:
a. becoming optimistic about the state of the economy.
b. becoming pessimistic about the state of the economy.
c. expecting future income and wealth to decline.
d. None of these.
a
Economics
You might also like to view...
The demand for real money balances ________
A) is downward sloping with respect to prices B) is downward sloping with respect to interest rates C) is downward sloping with respect to income D) all of the above E) none of the above
Economics
Which of the following conditions hold true for both the perfectly competitive firm and the monopoly at the profit-maximizing output level?
A) MR = P B) MC = ATC C) MC = P D) MR = MC
Economics