Asked by
Maria Gomez
on Dec 16, 2024
Verified
Which of the following will shift the consumption function upward?
A) A lower interest rate
B) An increase in the interest rate
C) An increase in disposable income
D) A decrease in disposable income
E) Expectations of lower prices in the future
Consumption Function
A representation in economics indicating the relationship between total consumer expenditures and household income levels.
Interest Rate
The cost of borrowing money or the return on savings, expressed as a percentage, influencing economic activity by affecting spending and investment decisions.
- Examine factors that cause shifts in the consumption function.
Verified Answer
JJ
Learning Objectives
- Examine factors that cause shifts in the consumption function.