If the price level increases, we would expect consumers to
A)raise their consumption functions.
B)move downward along their consumption functions.
C)lower their consumption functions.
D)move upward along their consumption functions.

Question

Quizplus · Accepted Answer

When the price level increases, consumers' purchasing power decreases, leading them to lower their consumption functions as they can afford to buy less with the same amount of money.

If the Price Level Increases, We Would Expect Consumers to