When consumers decide to increase household debt, this action will:
A) Shift the consumption schedule upward
B) Shift the consumption schedule downward
C) Increase the amount consumed along a stable consumption schedule
D) Decrease the amount consumed along a stable consumption schedule

Question

Quizplus · Accepted Answer

When consumers increase their household debt, they have more access to credit and therefore more purchasing power. This leads to an increase in consumption and a shift in the consumption schedule upward.

When Consumers Decide to Increase Household Debt, This Action Will