Which of the following would not shift the consumption function downward?
A)a decline in business profits
B)a decline in wealth
C)an increase in the price level
D)an increase in the interest rate
E)a more pessimistic outlook about the future

Question

Quizplus · Accepted Answer

A decline in business profits primarily affects investment rather than consumption directly, so it would not shift the consumption function downward.

Which of the Following Would Not Shift the Consumption Function