Which of the following events would shift the consumption function upward?
A)an increase in disposable income
B)a decrease in disposable income
C)a decrease in wealth
D)a decrease in expected future disposable income
E)an increase in wealth

Question

Quizplus · Accepted Answer

An increase in wealth would shift the consumption function upward as individuals would feel more financially secure and would be more likely to increase their spending.

Which of the Following Events Would Shift the Consumption Function