Which of the Following Will NOT Shift the Consumption Function

question 218

Multiple Choice

Which of the following will NOT shift the consumption function upward?

• A) an increase in disposable income
• B) a fall in the real interest rate
• C) an increase in wealth
• D) an increase in price

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Definitions:

Liabilities

Financial obligations or debts that a company or individual is responsible for repaying.

Accruals

The accounting principle that revenue and expenses are recorded when they are incurred, regardless of when cash is exchanged.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time, reflecting the financial condition of the company.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.