At a fixed income level, an increase in consumption which is ...

[WhattoUnderstand]

At a fixed income level, an increase in consumption which is accompanied by a decrease in savings is reflected by
 
  A) an upward rotation of the consumption function.
  B) an upward shift of the consumption function.
  C) a movement up along the consumption function.
  D) a downward rotation of the consumption function.

Question 2

A permanent increase in autonomous investment causes
 
  A) a less than proportional increase in real Gross Domestic Product (GDP).
  B) a more than proportional increase in real Gross Domestic Product (GDP).
  C) an offsetting change in saving that leaves real Gross Domestic Product (GDP) at the same level.
  D) a proportional increase in real Gross Domestic Product (GDP).

[BUTTHOL369]

Answer to Question 1

B

Answer to Question 2

B

[WhattoUnderstand]

Excellent

[bulacsom]

TYSM