In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) cause a movement along the line.
B) shift the line leftward.
C) make the line positively sloped.
D) shift the line rightward.

Question

Quizplus · Accepted Answer

If household consumption is positively related to household income, then an increase in household income will shift the line rightward, indicating that at every level of income, consumption will increase. This reflects a positive relationship between income and consumption.

In the Above Figure, If Household Consumption Is Positively Related