________ shifts the consumption function upward.
A)An increase in expected future disposable income
B)An increase in the real interest rate
C)A decrease in the marginal propensity to consume
D)An increase in the price level
E)An increase in disposable income

Question

Quizplus · Accepted Answer

When there is an increase in expected future disposable income, individuals tend to increase their current consumption, shifting the consumption function upward.

________ Shifts the Consumption Function Upward