Which of the following is most likely to lead to an increase in current consumption?
A)an increase in personal income tax rates
B)an increase in one's expected future income
C)a decrease in one's marginal propensity to consume
D)an increase in the interest rate

Question

Quizplus · Accepted Answer

An increase in one's expected future income would likely lead to an increase in current consumption as individuals may feel more confident in their ability to repay any debt incurred through increased consumption.

Which of the Following Is Most Likely to Lead to an Increase