A movement from one point to another point on the same consumption function could be caused due to
A)changes in wealth.
B)an increase in the general price level.
C)decrease in the real interest rates.
D)changes in disposable income.

Question

Quizplus · Accepted Answer

A movement along a consumption function is caused by a change in disposable income. A change in wealth would shift the consumption function, not cause movement along it. An increase in the general price level would shift the consumption function downwards, not cause movement along it. A decrease in real interest rates would shift the consumption function upwards, not cause movement along it.

A Movement from One Point to Another Point on the Same