Which one of the following will shift the consumption function upward?
A)Higher interest rates.
B)An increase in real assets.
C)Expectations of future economic growth.
D)Lower capacity utilization rates.
E)A tax increase.

Question

Quizplus · Accepted Answer

An increase in real assets increases household wealth, leading to higher consumption at each level of income, thus shifting the consumption function upward.

Which One of the Following Will Shift the Consumption Function