If the consumption schedule shifts downward, and the shift was not caused by a tax change, then the saving schedule
A)may shift either upward or downward.
B)will shift downward.
C)will shift upward.
D)will not shift.

Question

Quizplus · Accepted Answer

If the consumption schedule shifts downward, it implies that people are consuming less at each level of income, which means they are saving more. Therefore, the saving schedule will shift upward.

If the Consumption Schedule Shifts Downward, and the Shift Was