A downward shift in the consumption function can be caused by:
A)expectations of higher inflation.
B)an increase in wealth.
C)a lower price level.
D)none of these.

Name: A downward shift in the consumption function can be caused by: A)expectations of higher inflation. B)an increase in wealth. C)a lower price level. D)none of these.
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Question

Quizplus · Accepted Answer

Expectations of higher inflation can lead to a downward shift in the consumption function as consumers may choose to save more in anticipation of future price increases.

A Downward Shift in the Consumption Function Can Be Caused