An increase in autonomous consumption
A)shifts the consumption function upward.
B)creates a movement upward along the consumption function.
C)creates a movement downward along the consumption function.
D)changes the slope of the consumption function.
E)shifts the consumption function downward.

Question

Quizplus · Accepted Answer

An increase in autonomous consumption means that at any given level of income, individuals will consume more. Therefore, the consumption function shifts upward.

An Increase in Autonomous Consumption