Which of the following will shift the consumption function upward?
A)A decrease in disposable income
B)An increase in disposable income
C)An increase in the interest rate
D)Expectations of lower future prices
E)An increase in net wealth

Question

Quizplus · Accepted Answer

An increase in net wealth, such as an inheritance or a rise in the value of assets, will shift the consumption function upward as individuals will have more resources available to spend on goods and services.

Which of the Following Will Shift the Consumption Function Upward