Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. What will cause an upward shift to curve C₂? A) an increase in the amount consumed as disposable personal income increases. B) an increase in consumption at any level of disposable personal income C) an increase in the price level D) an increase in transfer payments

Question

Quizplus · Accepted Answer

An upward shift in the consumption function curve would mean that there is an increase in consumption at any level of disposable personal income, which is represented by a shift to the right of the curve. None of the other options mentioned would cause an upward shift to the consumption function curve.

Figure 13-3 -Refer to Figure 13-3. Suppose the Consumption Function Is Given