Around 25 percent of the federal government's budget goes towards ...

[rmenurse]

Around 25 percent of the federal government's budget goes towards redistributive programs.
 
  a. True b. False

Question 2

Explain what the slope of the income consumption curve shows about the income elasticity of demand.
 
  What will be an ideal response?

[mcni194]

Answer to Question 1

b

Answer to Question 2

A positive slope of the income consumption curve is associated with a positive income elasticity of demand, and a negatively sloped income consumption curve is associated with a negative income elasticity of demand. The income consumption curve represents how consumption changes with an increase in income. An upward-sloping income consumption curve represents an increase in consumption as income rises, as does a positive income elasticity.