Which of the following will not shift the consumption function?
A)A change in household wealth
B)A change in the price level
C)A change in household disposable income
D)A change in the level of unemployment
E)A change in the rate of interest

Question

Quizplus · Accepted Answer

A change in household disposable income does not shift the consumption function; instead, it moves along the existing consumption function. Changes in wealth, price levels, unemployment, and interest rates can shift the consumption function by affecting consumer confidence and spending ability.

Which of the Following Will Not Shift the Consumption Function