A change in consumption caused by a change in disposable income is shown by:
A)movement along the consumption function.
B)a rightward shift of the consumption function.
C)a change in the slope of the consumption function.
D)a leftward shift of the consumption function.
E)a change in the shape of the consumption function.

Question

Quizplus · Accepted Answer

A change in disposable income directly affects consumption and causes movement along the consumption function. Therefore, the answer is movement along the consumption function.

A Change in Consumption Caused by a Change in Disposable