Which of the following would be expected to shift the consumption function down?
A) increases in wealth
B) expectations of more business profits ahead
C) decreases in the nation's population
D) increases in real disposable income

Question

Quizplus · Accepted Answer

A decrease in the nation's population would likely lead to a decrease in overall consumption, shifting the consumption function down. This is because with fewer people, there would be less overall demand for goods and services.

Which of the Following Would Be Expected to Shift the Consumption