Macroeconomics
How might a sudden increase in consumer confidence affect the consumption function?
What is the effect of high real interest rates on saving and borrowing?
Evaluate the impact of a government policy that reduces taxes on capital gains. How might this affect consumption and saving?
If a recession is expected, what is the likely impact on current consumption?
Which of the following best synthesizes the impact of low real interest rates on the consumption function?
If consumers expect future prices to rise, how might this affect their current consumption?
What is the likely impact of increased borrowing on current and future consumption?
Which of the following factors can cause the consumption function to shift upward?
If stock prices unexpectedly increase, what is the likely effect on the consumption function?
If consumers expect a significant increase in their future income, how might this affect their current consumption?
