One factor that shifts the consumption schedule is household wealth. Households build wealth by:
A) Spending their current incomes
B) Spending out of their future incomes
C) Spending their incomes as they earn them
D) Not spending all their current incomes

Question

Quizplus · Accepted Answer

When households do not spend all their current incomes, they are able to save some of it, which builds up their wealth over time. As household wealth increases, they may feel more comfortable spending more and shift their consumption schedule to a higher level. Therefore, household wealth is a factor that can shift the consumption schedule, and the best choice is D.

One Factor That Shifts the Consumption Schedule Is Household Wealth