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

Question

Quizplus · Accepted Answer

An increase in future taxes would decrease the demand for current consumption and shift the demand curve to the left, so it would not cause the curve to shift to the right. A decrease in current taxes, an increase in current income, and an increase in future income would all increase the demand for current consumption and shift the curve to the right.

The Demand for Current Consumption,as Plotted Against the Interest Rate,shifts