Asked by
Hunter Phillips
on Dec 16, 2024Verified
An upward shift of the consumption function might be caused by:
A) an increase in disposable income.
B) a decrease in disposable income.
C) a decrease in the price level.
D) a decrease in household wealth.
E) an increase in the interest rate.
Consumption Function
An economic formula that represents the relationship between total consumer spending and total national income.
Household Wealth
The total value of all financial and non-financial assets owned by members of a household minus any liabilities.
- Study the factors influencing variations in consumer spending habits.
Verified Answer
NJ
Learning Objectives
- Study the factors influencing variations in consumer spending habits.