Which of the following will most likely cause movement along the consumption function?
A)a change in disposable income
B)a change in interest rates
C)a change in tastes
D)a change in consumers' expectations

Question

Which of the following will most likely cause movement along the consumption function?
A)a change in disposable income 
B)a change in interest rates 
C)a change in tastes 
D)a change in consumers' expectations

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption and disposable income. Therefore, changes in disposable income will directly affect consumption, causing movement along the consumption function. Changes in interest rates, tastes, or consumers' expectations may also affect consumption, but they would result in a shift of the consumption function rather than movement along it.

Which of the Following Will Most Likely Cause Movement Along