Which of the following events could result in the consumption function shifting from CF0 to CF2?
A) an increase in disposable income
B) an increase in expected future income
C) a decrease in wealth
D) a decrease in the real interest rate
E) a decrease in disposable income
The figure above shows two aggregate expenditure lines.
C
Economics
You might also like to view...
Contractionary fiscal policy
What will be an ideal response?
Economics
John Maynard Keynes argued that the fundamental problem which led to the world depression was
A) insufficient demand for goods and services. B) a shortage of goods and services. C) negative net exports on goods and services. D) a decreasing supply of goods and services.
Economics