Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) 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

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An increase in consumer confidence would cause an upward shift in the consumption function curve, as consumers would be more willing to spend and less likely to save at any given level of income. The other choices would either have no effect or cause a downward shift in the consumption function curve.

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