Which of the following will most likely cause movement along the consumption function?

As Figure 10.5 shows, government receipts and outlays tend to fluctuate over time. For example, beginning in 2007, when the economy stagnated as a consequence of the financial crisis, government receipts declined while outlays increased

What will be an ideal response?

Which of the following policies would reduce the procyclical nature of fiscal policy at the state level?

A. The establishment of "rainy-day funds" B. The institution of balanced budget requirements C. The introduction of price controls D. The elimination of automatic stabilizers