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Unformatted text preview: between: a. consumption and disposable income b. consumption and tax revenue c. consumption and aggregate demand d. consumption and investment 5. The marginal propensity to consume falls when: a. people save less from an increase in income b. people save more from an increase in income c. peoples disposable income rises d. peoples disposable income falls 6. What will lead to a shift in the consumption function? a. a reduction in personal income taxes b. an increase in government spending c. an increase in the price level d. an increase in GDP 7. The effect of a temporary tax cut on personal consumption: a. is greater than the effect of a permanent tax cut b. is the same as the effect of a permanent tax cut c. is less than the effect of a permanent tax cut d. is negative...
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