Which of the following will not shift the consumption function upward?
A)a drop in the price level
B)an increase in net wealth
C)a drop in the interest rate
D)expectations of lower future income
E)expectations of higher prices in the future

Question

Quizplus · Accepted Answer

Expectations of lower future income would likely decrease consumption, not increase it, thus not shifting the consumption function upward.

Which of the Following Will Not Shift the Consumption Function