Which of the following will most likely cause movement along the consumption function?
A)A change in disposable income
B)A change in interest rates
C)A change in tastes
D)A change in consumers' expectations

Question

Quizplus · Accepted Answer

A change in disposable income directly affects consumption as people tend to spend more when they have more disposable income. The other choices may also have an impact on consumption, but they are less direct and may be more likely to shift the entire consumption function rather than cause movement along it.

Which of the Following Will Most Likely Cause Movement Along