An upward shift of the consumption function could be caused by a(n)
A) increase in the interest rate
B) decrease in the interest rate
C) decrease in wealth
D) increase in the autonomous production
E) increase in disposable income

Question

Quizplus · Accepted Answer

A decrease in the interest rate can lead to an upward shift in the consumption function as it reduces the cost of borrowing, encouraging more spending and consumption.

An Upward Shift of the Consumption Function Could Be Caused