Changes in disposable income lead to movements along the consumption function; changes in wealth or other factors

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"Changes in disposable income lead to movements along the consumption function; changes in wealth or other factors lead to a shift of the consumption function." Explain this statement with an illustration of each case.

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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Question Posted: Dec 05, 2015 03:35 AM

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Changes in disposable income lead to movements along the consumption function; changes in wealth or other factors

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