Which of the following will most likely cause a shift in the consumption function?
A)a change in consumer confidence
B)a change in national output
C)a change in real GDP
D)a change in disposable income

Question

Which of the following will most likely cause a shift in the consumption function?
A)a change in consumer confidence 
B)a change in national output 
C)a change in real GDP 
D)a change in disposable income

Quizplus · Accepted Answer

A change in consumer confidence can directly affect the consumption function as it influences consumers' willingness to spend or save, thereby shifting the consumption function.

Which of the Following Will Most Likely Cause a Shift