The consumption function will shift for all of the following reasons except:
A) a change in a household's real assets.
B) a change in interest rates.
C) expectations of price changes.
D) changes in a household's disposable incomes.

Question

Quizplus · Accepted Answer

The consumption function shifts due to changes in factors like real assets, interest rates, and expectations of future prices, but not due to changes in current disposable income, as these are represented as movements along the consumption function rather than shifts of the function itself.

The Consumption Function Will Shift for All of the Following