In the above figure, a change in autonomous consumption to 100 would cause the consumption function to
A) become steeper.
B) become flatter.
C) shift down.
D) shift up.

Question

Quizplus · Accepted Answer

A change in autonomous consumption to 100 would shift the entire consumption function up, but the slope of the function would not change. Therefore, the correct choice is D, which indicates a shift up in the consumption function.

In the Above Figure, a Change in Autonomous Consumption to 100