Which of the following would shift the consumption schedule downward?
A) A decrease in real interest rates
B) An increase in the value of financial assets
C) An increase in the probability of a recession
D) A decrease in disposable income

Question

Quizplus · Accepted Answer

An increase in the probability of a recession would make consumers more cautious, leading them to save more and spend less, thus shifting the consumption schedule downward.

Which of the Following Would Shift the Consumption Schedule Downward