Author Question: The consumption function is drawn on a graph with disposable income on the horizontal axis without ... (Read 54 times)

skymedlock · **on:** Jun 30, 2018

The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
a. an upward adjustment in the vertical intercept.
b. no change in the adjustment in the vertical intercept.
c. an increase in the slope of the consumption schedule.
d. a decrease in the slope of the planned expenditure schedule.

Question 2

If something is a unit of account, then it:
a. serves as a yardstick for measuring the relative value of other goods
b. is a means of holding wealth for the future
c. is fairly stable
d. is durable and portable
e. is accepted as payment for any purchase