A decline in disposable income
A)increases consumption by moving upward along a specific consumption schedule.
B)decreases consumption because it shifts the consumption schedule downward.
C)decreases consumption by moving downward along a specific consumption schedule.
D)increases consumption because it shifts the consumption schedule upward.

Question

Quizplus · Accepted Answer

A decline in disposable income decreases consumption by moving downward along a specific consumption schedule, as consumers have less income to spend.

A Decline in Disposable Income