Which of the Following Will NOT Shift the Consumption Function

question 344

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) None of the above shift the consumption function upward.

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Definitions:

U.S. GAAP

U.S. GAAP, or United States Generally Accepted Accounting Principles, is a collection of accounting standards and procedures for companies to follow when compiling their financial statements in the U.S.

Accounting Treatment

The methodology and guidelines used to represent an accounting process or transaction in the financial statements, according to principles of accounting standards.

Comparability

An accounting principle that allows financial information to be compared across different periods or companies for analysis.

Financial Information

Data related to the financial status and activities of an individual, company, or organization.