Which of the following events would produce an upward shift in the consumption function, other things being equal?
A) an increase in consumer wealth
B) a decrease in consumer wealth
C) a decrease in autonomous consumption
D) an increase in the interest rate

Question

Quizplus · Accepted Answer

An increase in consumer wealth would allow consumers to spend more, thus leading to an upward shift in the consumption function.

Which of the Following Events Would Produce an Upward Shift