Which of the following situations best explains a leftward shift in the consumption share line?
A)An increase in the consumer confidence index
B)A decrease in interest rates
C)An increase in interest rates
D)A decrease in income tax
E)A decrease in wealth

Question

Quizplus · Accepted Answer

A leftward shift in the consumption share line indicates a decrease in consumption as a share of GDP. A decrease in wealth would lower consumers' ability to spend, leading to a lower consumption share.

Which of the Following Situations Best Explains a Leftward Shift