If consumers' expectations about future income are very optimistic, then we should expect
A)the consumption function to shift downward.
B)consumers to move up along the consumption function.
C)the consumption function to shift upward.
D)consumers to move down along the consumption function.

Question

Quizplus · Accepted Answer

Optimistic expectations about future income would lead to an increase in consumers' willingness to spend and invest, leading to an upward shift in the consumption function.

If Consumers' Expectations About Future Income Are Very Optimistic, Then