Question :
57) When the real interest rate falls, there is
A) an : 1240595
57) When the real interest rate falls, there is
A) an increase in the slope of the consumption function.
B) an upward shift of the consumption function.
C) a downward shift of the consumption function.
D) a decrease in the slope of the consumption function.
E) a movement upward along the consumption function.
58) When the real interest rate rises, there is
A) an upward movement along the consumption function.
B) a downward movement along the consumption function.
C) an upward shift of the consumption function.
D) a downward shift of the consumption function.
E) neither a shift of the consumption function nor a movement along the consumption function.
59) If the real interest rate increases, there is
A) a movement upward along the consumption function.
B) a movement downward along consumption function.
C) an upward shift of the consumption function.
D) a downward shift of the consumption function.
E) a change in the slope of the consumption function.
60) A rise in the real interest rate ________ consumption expenditure and ________.
A) increases; shifts the consumption function upward
B) decreases; shifts the consumption function downward
C) increases; shifts the consumption function downward
D) decreases; shifts the consumption function upward
E) decreases; results in a movement downward along the consumption function
61) An increase in expected future disposable income ________ consumption expenditure and ________.
A) increases; shifts the consumption function upward
B) decreases; shifts the consumption function downward
C) increases; shifts the consumption function downward
D) decreases; shifts the consumption function upward
E) increases; results in a movement upward along the consumption function
62) In Germany, expected future income increased during 2010. This increase led to
A) a movement upward along the consumption function.
B) a movement downward along the consumption function.
C) an upward shift of the consumption function.
D) a downward shift of the consumption function.
E) no movement along the consumption function and no shift of the consumption function.
63) ________ shifts the consumption function upward.
A) A decrease in the marginal propensity to consume
B) An increase in the real interest rate
C) An increase in expected future disposable income
D) An increase in disposable income
E) An increase in the price level
64) When the economy enters an expansion of a business cycle, households become more optimistic about expected future disposable income. The increase in optimism leads to
A) a shift upward of the consumption function.
B) an increase in consumption expenditures.
C) no change in the level of consumption expenditures.
D) a movement upward along the consumption function.
E) a movement downward along the consumption function.
65) A decrease in wealth ________ consumption expenditure and ________.
A) increases; shifts the consumption function upward
B) decreases; shifts the consumption function downward
C) increases; shifts the consumption function downward
D) decreases; shifts the consumption function upward
E) decreases; results in a movement downward along the consumption function
66) Other things remaining the same, ________ in U.S. real GDP results in ________ in U.S. imports.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; no change
E) an increase; a decrease followed by no change
