A movement along the consumption function is the result of changes in
A) expected future income.
B) disposable income.
C) the real interest rate.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

A movement along the consumption function is caused by changes in the disposable income, which is the income that remains after subtracting taxes and transfers from one's gross income. The other factors listed (expected future income and real interest rate) would cause a shift in the consumption function, not a movement along it.

A Movement Along the Consumption Function Is the Result of Changes