Which of the following statements concerning the effects of demographics on consumption is not true?
a. The size of the population affects the slope of the consumption function.
b. The age of the population affects the slope of the consumption function.
c. Other things equal, the level of consumption will rise with increases in population.
d. Younger households tend to have higher MPCs than older households.
e. Older households tend to have higher MPSs than younger households.
Question 2
Almost everyone is affected directly or indirectly by high rates of employment or high and variable rates of inflation.
a. True
b. False
Indicate whether the statement is true or false
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