If the Consumption Function Shifts Downward, Which of the Following

question 76

Multiple Choice

If the consumption function shifts downward, which of the following is the most likely cause?

• A)Consumers become more optimistic.
• B)The price level increased.
• C)Consumers' incomes increase.
• D)Real interest rates decrease.

---

Definitions:

Four-Bedroom Homes

Residential properties specifically designed with four bedrooms, catering to the housing needs of medium to large families or providing additional space for offices or guest rooms.

Three-Bedroom Homes

Residential properties designed with three sleeping rooms, catering to families or groups needing multiple sleeping areas.

Increase

An upward adjustment in size, number, value, or strength.

Percent More

The increase in a quantity measured as a fraction of 100.