A movement along the consumption function is the result of changes in
A) the real interest rate.
B) disposable income.
C) expected future income.
D) the price level

Question

Quizplus · Accepted Answer

A movement along the consumption function is primarily caused by changes in disposable income. This is because the consumption function plots consumption against disposable income, indicating how changes in income levels affect consumer spending. Changes in the real interest rate, expected future income, and the price level typically shift the consumption function rather than cause movement along it.

A Movement Along the Consumption Function Is the Result of Changes