If expectations of future income become more optimistic,which of the following would occur?
A) Nothing would occur.
B) The consumption-income line would shift downward.
C) The consumption-income line would shift upward.
D) There would be an rightward movement along the consumption-income line.
E) There would be a leftward movement along the consumption-income line.

Question

Quizplus · Accepted Answer

If expectations of future income become more optimistic, consumers will increase their current consumption, which will shift the consumption-income line upwards. This is because consumers will feel more confident about their future income and will be more willing to spend money now.

If Expectations of Future Income Become More Optimistic,which of the Following