A decrease in the price level will most likely have what effect on the consumption function?
A)It will shift upward.
B)It will shift downward.
C)It will cause movement downward along the function.
D)It will cause movement upward along the function.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, which typically leads to an increase in consumer spending. This is represented by an upward shift in the consumption function.

A Decrease in the Price Level Will Most Likely Have