Author Question: In Figure 11.1, an increase in consumer wealth is represented by a change in the consumption ... (Read 108 times)

Beheh · **on:** Jun 30, 2018

In Figure 11.1, an increase in consumer wealth is represented by a change in the consumption function from

A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.

Question 2

According to the Keynesian approach, a decrease in taxes

A) will decrease consumption, as the government will have to spend less.
B) will not impact consumption, as most consumption is autonomous.
C) will increase consumption exactly by the amount of the taxes.
D) will increase consumption by an amount of less than the change in taxes.