Homework 4 part 3

# Homework 4 part 3 - 29 The sensitivity parameter in the...

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29. The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume. A) True B) False Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): False 30. In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a fall in the real rate of interest (all else constant) will cause a shift upward of the consumption function. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): True 31. In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a rise in the price level (all else constant) will cause a shift upward of the consumption function. Table for Individual Question Feedback Points Earned: 1.0/1.0 Correct Answer(s): False

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