When disposable income increases,
A)the consumption function shifts upward.
B)the saving function shifts downward.
C)a movement occurs down along the consumption function.
D)a movement occurs up along the consumption function.
E)a movement occurs down along the saving function.

Question

Quizplus · Accepted Answer

When disposable income increases, people tend to consume more, leading to a movement up along the consumption function, not a shift.

When Disposable Income Increases