An increase in the income-dependent portion of the consumption function would correspond to a
A)Shift of the consumption function upward.
B)Shift of the consumption function downward.
C)Movement along the consumption function to the right.
D)Movement along the consumption function to the left.

Question

Quizplus · Accepted Answer

An increase in the income-dependent portion of the consumption function means that for a given level of income, consumption increases, leading to a movement along the consumption function to the right, as more income results in more consumption.

An Increase in the Income-Dependent Portion of the Consumption Function