A decrease in disposable income will:
A)shift the consumption function upward.
B)shift the consumption function downward.
C)cause an upward movement along the consumption function.
D)cause a downward movement along the consumption function.
E)make the consumption function flatter.

Question

Quizplus · Accepted Answer

A decrease in disposable income will result in a decrease in consumption, causing a downward movement along the consumption function.

A Decrease in Disposable Income Will