Which of the following is least likely to cause a shift of the consumption function?
A) a change in the level of saving
B) a change in consumer expectations about future prices
C) a change in household wealth
D) a change in investment spending
E) a change in the interest rate

Question

Quizplus · Accepted Answer

Investment spending is not directly related to consumption, so it is least likely to cause a shift of the consumption function. A change in saving level (A), consumer expectations (B), household wealth (C), or interest rate (E) can all affect consumption and lead to a shift of the consumption function.

Which of the Following Is Least Likely to Cause a Shift