When disposable income increases
A)the consumption function shifts upward.
B)the saving function shifts downward.
C)a movement occurs down along the consumption function.
D)a movement occurs up along the consumption function.
E)Both A and B are correct.

Question

Quizplus · Accepted Answer

When disposable income increases, there is a movement up along the consumption function as people tend to consume more with higher income.

When Disposable Income Increases