Consumption expenditures decrease when ________.
A) the real interest rate falls
B) disposable income increases
C) autonomous consumption increases
D) all of the above
E) none of the above
Question 2
During a typical recession in the United States,
A) investment expenditures usually decrease at the same rate as consumption expenditures.
B) investment expenditures usually decrease, while consumption expenditures usually increase.
C) investment expenditures usually decrease much more than consumption expenditures.
D) investment expenditures usually decrease less than consumption expenditures.
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