Which of the following will shift the consumption function upward?
A)An increase in consumer wealth.
B)An increase in the interest rate.
C)An increase in personal income taxes.
D)A decrease in the MPC.
E)An increase in disposable income.

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 at each level of income.

Which of the Following Will Shift the Consumption Function Upward