Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) Upward shifts of the consumption function, for example from C₀ to C₁ to C₂demonstrate A) an increase in the marginal propensity to save. B) increases in the amount of consumption for a given level of disposable income. C) increases in the amount of disposable income available for consumption. D) a decrease in the marginal propensity to save.

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Upward shifts of the consumption function represent an increase in the amount of consumption for a given level of disposable income. This means that as disposable income increases, individuals are spending more, which is represented by the shift of the consumption function upwards. It does not necessarily indicate a change in marginal propensity to save, as this could stay the same or even decrease.

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