Which of the following will shift the consumption function upward?

A) A decrease in disposable income
B) An increase in disposable income
C) An increase in the interest rate
D) Expectations of lower future prices
E) An increase in net wealth

Consumption Function

It is an economic formula representing the relationship between total consumption and gross national income, suggesting that consumption patterns are directly related to income levels.

Disposable Income

Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned.