Which one of the following will shift the consumption function upward?
A) higher interest rates
B) expectations that the economy will grow in the future
C) a decrease in money holdings
D) higher capacity utilization rates

Question

Quizplus · Accepted Answer

Expectations that the economy will grow in the future will increase consumer confidence and optimism, leading to an increase in consumption and therefore shifting the consumption function upward.

Which One of the Following Will Shift the Consumption Function