Which of the following would shift the consumption function upward?
A)a decrease in disposable income
B)an increase in disposable income
C)an increase in the interest rate
D)expectations of lower future prices
E)an increase in net wealth

Question

Quizplus · Accepted Answer

An increase in net wealth would shift the consumption function upward as it increases the disposable income of consumers, enabling them to spend more on goods and services.

Which of the Following Would Shift the Consumption Function Upward