Along the aggregate consumption function,an increase in income will
A)cause autonomous consumption to rise
B)shift the consumption function upward
C)cause a corresponding downward shift of the saving function
D)cause movement along the given consumption function
E)shift the consumption function downward

Question

Quizplus · Accepted Answer

An increase in income leads to movement along the given consumption function, as the function shows the relationship between income and consumption.

Along the Aggregate Consumption Function,an Increase in Income Will