Question: A decrease in the marginal propensity to consume will: Group of answer choices shift the consumption function downwards shift the consumption function upwards cause consumption

A decrease in the marginal propensity to consume will: Group of answer choices shift the consumption function downwards shift the consumption function upwards cause consumption to become less responsive to changes in households' disposable income cause the consumption function to become steeper

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Question 1 Which of the following best represents the savings function? Group of answer choices Savings = Autonomous Consumption + marginal propensity to save x disposable income Savings = Autonomous...

Comparative advantage in production of a good occurs __________ a. when a country can produce that good using fewer resources than could other countries. b. when a country can produce that good at a...

1. Most economists believe that the source of European high unemployment in the past two decades is A) labor market institutions. B) tight monetary policy. C) tight fiscal policy. D) financial...

I need help with these questions. When resource prices are negotiable, the long-run aggregate supply curve is represented by A. an upward-sloping line B. a downward-sloping line C. a vertical line at...

Assignment 01 (semester 2) Assignment 01 Unique number 730716 Closing date 30 August 2021 Content Learning units 1 and 2 of the Study Guide and the relevant chapters of the prescribed book Questions...

Question 1 2pts If government expenditure on goods and services increases by $20 billion, then aggregate demand function Group of answer choices decreases by more than $20 billion. increases by more...

Part one. Consider a economy with a constant population of N = 200. Individuals are endowed with y = 10 units of the consumption good when young and nothing when old. 1. What is the equation for the...

7. If a bond is quoted in the newspaper at 88.75, the current price of a $1,000 face value bond is: (Points : 1) $75.00 $88.00 $88.75 $887.50 $1,000.00 11. Assume the beta for the stock market in...

Please help...thank you! PART A - MULTIPLE CHOICE QUESTIONS 1. Real GDP is nominal GDP adjusted for: A) double counting. B) changes in prices. C) population. D) imports. 2. What do a rubbernecking...

HI PLEASE ANSWER ALL 78 MULTIPLE CHOICE QUESTIONS THANK YOU 1. Which of the following will lead to a decrease in both equilibrium price and quantity in a market? a)A decrease in demand b)An increase...

Brockwell left his boat to be repaired at Lake Gaston Sales. The boat contained electronic equipment and other personal items. Brockwell signed a form stating that Lake Gaston had no responsibility...

Write the low level language statements for the fluid filling operation in Example 9.6.

Why do bond markets exceed equity markets in size? Group of answer choices Fixed income offers lower risk and steady returns attractive to institutional investors, supporting larger market capacity....

New Section B / US A Aa A Arrange Paragraph Draw (5 Points) Question 2: Linear Programing Formulation A manufacturer in the Vancouver produces two types of coffee makers: CM1 and CM2. They are...

2. What we can learn from the past

17. In a communication context (choose which one), put plus (+) for the areas you find easy to perform and minus (-) for the areas you find difficult to perform. a. to present something to a larger...

2. Develop a good and lasting relationship