The demand for current consumption,as plotted against current income,shifts to the right due to
A) a increase in current taxes.
B) an increase in future taxes.
C) an increase in current income.
D) a decrease in future income.
E) a decrease in interest rates.

Question

Quizplus · Accepted Answer

An increase in current income leads to an increase in disposable income, which in turn leads to an increase in current consumption. This causes the demand curve for current consumption to shift to the right.

The Demand for Current Consumption,as Plotted Against Current Income,shifts to the Right