Asked by
Jared Fernandez
on Oct 13, 2024
Verified
If disposable income were to rise from 4,000 to 5,000
A) induced consumption would fall.
B) induced consumption would stay the same.
C) induced consumption would rise.
D) there is not enough information to determine whether induced consumption would rise,fall or remain the same.
Induced Consumption
The concept that the level of consumer spending increases as disposable income rises, and decreases as disposable income falls, all else being constant.
- Understanding the effect of disposable income amounts on consumer spending and savings habits.
Verified Answer
YE
Learning Objectives
- Understanding the effect of disposable income amounts on consumer spending and savings habits.