# An increase in aggregate wealth a increases

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Chapter 11- Income and Expenditure.pdf

131 .   Which factor is NOT a determinant of consumer spending ?
A ) disposable income
B ) expected disposable income
C ) wealth
D ) investment spending
132 .   If other things are equal , an increase in aggregate wealth will _ ____ and shift the consumption function _____.
133 .   The aggregate consumption function depends on :
134 .   According to the life - cycle hypothesis , wealth affects consumer spending because :
135 .   An increase in aggregate wealth :
A ) increases consumption by each individual .
B ) increases the aggregate consumption function .
C ) decreases consumption by each individual .
D ) decreases the aggregate consumption function .
Answer:  C )   increases the aggregate consumption function .
136 .   The life - cycle hypothesis of consumer spending says that consumers plan their spending :
137 .   The consumption function shifts when :
138 .   The life - cycle hypothesis suggests that consumers :
139 .   People are likely to save the MOST _ ____ according to the life - cycle hypothesis .
A ) as they get closer to retirement
B ) in their peak earning years
C ) as they get older
D ) in their old age
140 .   A ( n ) _ ____ will increase the aggregate consumption function .
141 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If disposable income is \$ 500 , autonomous consumption is :
142 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If disposable income is \$ 500 , aggregate consumption is :
143 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If disposable income increases from \$ 500 to \$ 800 , autonomous consumption is :
A ) \$ 0.
B ) \$ 200 .
C ) \$ 240 .
D ) \$ 440 .
144 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If disposable income increases from \$ 500 to \$ 800 , aggregate consumption is :
145 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If disposable income increases from \$ 500 to \$ 800 , aggregate consumption will increase by :
146 .   Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8 YD , where C represents consumption and YD represents disposable income . If all employers announce in September that they guarantee to give all employees a large bonus in December , which equation could represent the new aggregate consumption function ?
135. An increase in aggregate wealth: A) increases consumption by each individual. B) increases the aggregate consumption function. C) decreases consumption by each individual. D) decreases the aggregate consumption function.
136. The life-cycle hypothesis of consumer spending says that consumers plan their spending:
Page 28 137. The consumption function shifts when:
138. The life-cycle hypothesis suggests that consumers:
139. People are likely to save the MOST _____ according to the life-cycle hypothesis. A) as they get closer to retirement B) in their peak earning years C) as they get older D) in their old age
140. A(n) _____ will increase the aggregate consumption function.
141. Suppose that the aggregate consumption function is given by the equation C= 200 + 0.8YD, where Crepresents consumption and YDrepresents disposable income. If disposable income is \$500, autonomous consumption is:
142. Suppose that the aggregate consumption function is given by the equation C= 200 + 0.8YD, where Crepresents consumption and YDrepresents disposable income. If disposable income is \$500, aggregate consumption is:
Page 29 143. Suppose that the aggregate consumption function is given by the equation C= 200 + 0.8YD, where Crepresents consumption and YDrepresents disposable income. If disposable income increases from \$500 to \$800, autonomous consumption is: A) \$0. B) \$200. C) \$240. D) \$440.
144. Suppose that the aggregate consumption function is given by the equation C= 200 + 0.8YD, where Crepresents consumption and YDrepresents disposable income. If disposable income increases from \$500 to \$800, aggregate consumption is:
145. Suppose that the aggregate consumption function is given by the equation C= 200 + 0.8YD, where Crepresents consumption and YDrepresents disposable income. If disposable income increases from \$500 to \$800, aggregate consumption will increase by:
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