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Problem

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question

If households are more optimistic about the future how would the consumption function be affected?

category

economics

options

  1. The marginal propensity to consume would decrease, decreasing the slope of the consumption function.
  2. The marginal propensity to consume would increase increasing the slope of the consumption function.
  3. The marginal propensity to save would increase, decreasing the slope of the consumption function.
  4. The marginal propensity to consume would remain the same, keeping the consumption function stable.
  5. The entire consumption function would shift to the right.
  6. The entire consumption function would shift to the left.
  7. The entire consumption function would shift upward.
  8. The marginal propensity to consume would decrease increasing the slope of the consumption function.
  9. The entire consumption function would shift downward.
  10. The marginal propensity to save would decrease, increasing the slope of the consumption function.

src

ori_mmlu-high_school_macroeconomics

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Official source

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