Which of the following could be a cause of consumption increasing?
A) Income decreases.
B) Interest rates increase.
C) Wealth increases.
D) Expected future income decreases.

Question

Quizplus · Accepted Answer

An increase in wealth could lead to an increase in consumption as individuals may feel more confident in their ability to spend and may have more disposable income. A decrease in income, an increase in interest rates, or a decrease in expected future income would likely lead to a decrease in consumption.

Which of the Following Could Be a Cause of Consumption