If households decrease the amount of bank account withdrawals, the consumption function may shift upward.

Question

Quizplus · Accepted Answer

The amount of bank account withdrawals has no direct relationship with the consumption function, so decreasing it would not necessarily cause the consumption function to shift upward. Other factors such as income, savings, and interest rates would have a bigger impact on the consumption function.

If Households Decrease the Amount of Bank Account Withdrawals, the Consumption