If people's real assets increase, then the:
A)economy will move to the right along the existing consumption function.
B)economy will move to the left along the existing consumption function.
C)consumption function will shift down.
D)consumption function will shift up.
E)investment demand curve will shift up.

Question

Quizplus · Accepted Answer

When people's real assets increase, they feel wealthier and are likely to spend more, leading to an upward shift in the consumption function.

If People's Real Assets Increase, Then The