How Does Propensity to Consume Affect Aggregate Demand (AD) Functions?
in Economics
2 views
3 Votes
3 Votes
How Does Propensity to Consume Affect Aggregate Demand (AD) Functions?
in Economics
by
3.7k Points

1 Answer

3 Votes
3 Votes
 
Best Answer

Increase in the propensity to consume causes an upward shift in the Aggregate Demand (AD) function (through an upward shift in the C- function). On the other hand, decrease in the propensity to consume causes a downward shift in AD function (through a downward shift in C-function).

by
3.7k Points

Related Questions

2 Votes
2 Votes
1 Answer 7 Views
4 Votes
4 Votes
1 Answer 25 Views
2 Votes
2 Votes
1 Answer 5 Views
Vikas Asked in Economics Aug 1, 2021
5 views
Vikas Asked in Economics Aug 1, 2021
by Vikas
3.7k Points
1 Vote
1 Vote
1 Answer 8 Views
1 Vote
1 Vote
0 Answers 5 Views
3 Votes
3 Votes
1 Answer 10 Views
3 Votes
3 Votes
1 Answer 8 Views
Vikas Asked in Economics Aug 18, 2021
8 views
Vikas Asked in Economics Aug 18, 2021
by Vikas
3.7k Points
3 Votes
3 Votes
1 Answer 4 Views
3 Votes
3 Votes
0 Answers 6 Views
Vikas Asked in Economics Aug 21, 2021
6 views
Vikas Asked in Economics Aug 21, 2021
by Vikas
3.7k Points