Which of the following events would produce an upward shift in the consumption function, other things being equal?
A)An increase in consumer wealth.
B)A decrease in consumer wealth.
C)A decrease in autonomous consumption.
D)Both b and c.

Question

Quizplus · Accepted Answer

An increase in consumer wealth typically leads to an upward shift in the consumption function because consumers feel wealthier and are likely to spend more, increasing overall consumption.

Which of the Following Events Would Produce an Upward Shift