Which of the following events would produce an upward shift in the consumption function, other things being equal?
A) an increase in consumer wealth
B) a decrease in consumer wealth
C) a decrease in autonomous consumption
D) an increase in the price level

Question

Quizplus · Accepted Answer

An increase in consumer wealth would shift the consumption function upward because consumers would have more disposable income to spend on goods and services, thus increasing their consumption at each level of income.

Which of the Following Events Would Produce an Upward Shift