Which of the following will cause a direct increase in consumption spending?
A)an increase in planned investment
B)an increase in government spending
C)an increase in disposable income
D)a decrease in net export spending
E)an increase in income taxes

Question

Quizplus · Accepted Answer

An increase in disposable income directly increases consumption spending as people have more money to spend on goods and services.

Which of the Following Will Cause a Direct Increase in Consumption