The U.S. consumption function
A) has shifted upward over time.
B) has a positive slope.
C) has a slope of about 0.9.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The U.S. consumption function has indeed shifted upward over time due to factors like income growth, has a positive slope indicating that as income increases, consumption also increases, and typically has a slope (marginal propensity to consume) of about 0.9, meaning that for every additional dollar of income, consumption increases by 90 cents.

The U.S. Consumption Function