A change in which of the following is least likely to cause a shift of the consumption function?
A)the saving rate
B)consumer expectations about future prices
C)household wealth
D)investment spending
E)the interest rate

Question

Quizplus · Accepted Answer

Investment spending is not a component of the consumption function, so a change in investment spending is less likely to cause a shift in the consumption function compared to changes in the saving rate, consumer expectations, household wealth, and the interest rate.

A Change in Which of the Following Is Least Likely