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All of the following changes shift the consumption function except:

A) A change in a households real assets

B) A change in the interest rate

C) Expectations of price changes

D) Changes in a households disposable income

E) Changes in taxation policy

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Joshua Stredder
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5 Nov 2020

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Related questions

Key concept: Consumption Function

The consumption function will shift for all of the following reasons except

a. a change in a household's real assets.

b. a change in the interest rates.

c. expectations of price changes.

d. changes in a household's disposable income.

e. changes in taxation policy.

The consumption function will shift for all of the following reasons except:

A. A change in a household's real assets

B. A change in interest rates

C. Expectations of price changes

D. Changes in a household's disposable incomes

E. Changes in taxation policy

The average propensity to consume (APC) equals

the change in real disposable income divided by the change in consumption expenditures.

the change in consumption expenditures divided by the change in real disposable income.

real disposable income divided by consumption expenditures.

consumption expenditures divided by real disposable income.

The consumption function shows how much

households plan to consume per year at each level of real disposable income.

households plan to consume per year at each level of savings.

households plan to consume per year at each possible interest rate.

real disposable income people will earn at each income tax bracket.

Saving is

the accumulation of past periods of savings while savings is the amount of disposable income that is not consumed in a given period of time.

the amount one does not consume in a given period of time while savings is the accumulation of past periods of saving.

the difference between disposable income and spending on goods and services while savings is the difference between real GDP and disposable income.

the difference between real GDP and disposable income while savings is the difference between disposable income and consumption spending.

Thinking as an economist would, which is true of investment?

Investment represents spending on capital goods.

Investment is a stock concept.

Investment is putting money into stocks and bonds.

It is the portion of disposable income that is not used for consumption or saving.

An appreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports.

lowers, lowers

increases, increases

increases, lowers

lowers, increases

QUESTION 33

Other things being equal, if input prices rise in a country, then there would be

cost-push inflation.

demand-pull inflation.

cost-push deflation.

more production and a lower price level.

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