A movement along the consumption function can be caused by a
A)decrease in taxes.
B)well performing stock market.
C)newly found $100,000 inheritance.
D)check from sold mutual funds.

Question

Quizplus · Accepted Answer

A movement along the consumption function is typically caused by a change in disposable income, such as a decrease in taxes, which directly affects the amount of income people have available to spend. Choices B, C, and D are changes in wealth or one-time income boosts, which can shift the consumption function but do not cause movement along it.

A Movement Along the Consumption Function Can Be Caused by a