Which of the following will not shift the consumption function?
A) a change in household wealth
B) a change in the price level
C) a change in household disposable income
D) a change in the level of unemployment
E) a change in the rate of interest

Question

Quizplus · Accepted Answer

A change in household disposable income does not shift the consumption function; it moves along the function because the consumption function itself represents the relationship between consumption and disposable income.

Which of the Following Will Not Shift the Consumption Function