Which one of the following will shift the consumption function downward?
A)An increase in disposable income.
B)A decrease in disposable income.
C)Legislation making credit harder to obtain.
D)Lower tax rates.
E)A technological breakthrough.

Question

Quizplus · Accepted Answer

Legislation making credit harder to obtain would reduce consumers' ability to finance purchases, thus shifting the consumption function downward.

Which One of the Following Will Shift the Consumption Function