The figure above shows three different consumption functions for a nation.
-Which of the following events could result in the consumption function shifting from CF₀ to CF₂?
A) an increase in disposable income
B) a decrease in disposable income
C) an increase in the real interest rate
D) an increase in wealth
E) an increase in expected future income

Question

The figure above shows three different consumption functions for a nation.
-Which of the following events could result in the consumption function shifting from CF₀ to CF₂?
A) an increase in disposable income 
B) a decrease in disposable income 
C) an increase in the real interest rate 
D) an increase in wealth 
E) an increase in expected future income

Quizplus · Accepted Answer

The Answer of  
The figure above shows three different consumption functions for a nation.
-Which of the following events could result in the consumption function shifting from CF₀ to CF₂?
A) an increase in disposable income 
B) a decrease in disposable income 
C) an increase in the real interest rate 
D) an increase in wealth 
E) an increase in expected future income

The Figure Above Shows Three Different Consumption Functions for a Nation