Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) Suppose the consumption function is given by curve C₁. What will cause an upward shift to curve C₂? A) an increase in the amount consumed as disposable personal income increases. B) an increase in consumption at any level of disposable personal income C) an increase in the price level D) an increase in transfer payments

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An upward shift to curve C₂ would mean that consumption increases at every level of disposable personal income. Therefore, the best choice is B, which states that an increase in consumption at any level of disposable personal income would cause the upward shift. The other choices (A, C, and D) do not necessarily lead to an increase in consumption at all levels of disposable personal income.

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