Which of the following will not cause the consumption schedule to shift?
A) a sharp increase in the amount of wealth held by households
B) a change in consumer incomes
C) the expectation of a recession
D) a growing expectation that consumer durables will be increasing in price soon

Question

Quizplus · Accepted Answer

A change in consumer incomes does not shift the consumption schedule; instead, it moves along the existing consumption schedule. Changes in wealth, expectations about the economy, and expectations about future prices can shift the consumption schedule by changing consumer confidence and spending habits, but a change in income simply changes the amount consumers are able to spend without altering the underlying relationship between income and consumption.

Which of the Following Will Not Cause the Consumption Schedule