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Determinants of Consumption and Saving
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Determinants of Consumption and Saving
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14. Income and Consumption / Determinants of Consumption and Saving / Problem 1
Problem 1
How might a sudden increase in consumer confidence affect the consumption function?
A
It will have no effect on the consumption function.
B
It is likely to shift the consumption function upward as consumers spend more.
C
It will only affect saving, not consumption.
D
It is likely to shift the consumption function downward as consumers save more.
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