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If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on
If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that O the consumption functon wil have a downward slope. as disposable income increases, consumer spending will remain constant. the future will closely resemble the past. consumption and disposable income will be negatively related
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