Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂? A) a decrease in wealth B) an increase in price level C) an increase in interest rates D) an increase in consumer confidence

Question

Quizplus · Accepted Answer

An increase in consumer confidence would cause an upward shift to the consumption function because consumers would feel more optimistic about their future income and be more willing to spend.

Figure 13-3 -Refer to Figure 13-3. Suppose the Consumption Function Is Given