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. experiencing a tax increase.
Answer: A
You might also like to view...
Which of these Presidents increased top marginal income tax rates during his term in his office?
a. franklin d. roosevelt b. john f. kennedy c. ronal reagan d. george w. bush
"Divisions" of a University The separate colleges within universities are often operated as profit centers. While a student takes courses throughout the university, the budget of a specific dean is based on the students it serves. Two models are 1)
basing funds on the number of student hours generated by a college and 2) basing funds on the number of students completing majors within the college. How do these two models affect the incentives for which courses included in the degree programs?