A shift in the consumption function: a. is based on the marginal propensity to consume. b. cannot be caused by a change in expectations. c. can be caused by a change in the price level. d. can be caused by a change in GDP.

A shift in the consumption function: a. is based on the marginal propensity to consume. b. cannot be caused by a change in expectations. c. can be caused by a change in the price level. d. can be caused by a change in GDP.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section8.4: Why Investment Demand Is Unstable

Problem 1YTE

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Question

A shift in the consumption function:
a. is based on the marginal propensity to consume.
b. cannot be caused by a change in expectations.
c. can be caused by a change in the price level.
d. can be caused by a change in GDP.

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