When consumers decide to increase household debt, this action will
A)shift the consumption schedule upward.
B)shift the consumption schedule downward.
C)increase the amount consumed along a stable consumption schedule.
D)decrease the amount consumed along a stable consumption schedule.

Question

Quizplus · Accepted Answer

When consumers increase household debt, they have more funds available to spend, which shifts the consumption schedule upward as they are likely to consume more at each level of disposable income.

When Consumers Decide to Increase Household Debt, This Action Will