Author Question: At a fixed income level, an increase in consumption which is accompanied by a decrease in savings is ... (Read 80 times)

WhattoUnderstand · **on:** Jun 30, 2018

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).