The consumption function will shift upward if real asset and money holdings:
A)increase, if people expect prices to increase, if interest rates decrease, and if taxes decrease.
B)increase, if people expect prices to increase, if interest rates increase, and if taxes increase.
C)increase, if people expect prices to increase, if interest rates increase, and if taxes decrease.
D)decrease, if people expect prices to decrease, if interest rates decrease, and if taxes decrease.
E)decrease, if people expect prices to increase, if interest rates increase, and if taxes decrease.

Question

Quizplus · Accepted Answer

An upward shift in the consumption function occurs when factors that increase disposable income or consumer confidence, such as increased real assets, lower interest rates, and decreased taxes, are present.

The Consumption Function Will Shift Upward If Real Asset and Money