The decline in consumer spending during the 2008-2009 recession was due in part to a decrease in disposable income.The decline in consumption resulting from the decline in disposable income caused a(n)________ the consumption function curve.
A)movement up along
B)movement down along
C)downward shift of
D)upward shift of

Question

Quizplus · Accepted Answer

A decrease in disposable income leads to a movement down along the consumption function curve, as consumers spend less at each level of income.

The Decline in Consumer Spending During the 2008-2009 Recession Was