Which of the Following Will Shift the Consumption Function Upward

question 116

Multiple Choice

Which of the following will shift the consumption function upward?

• A)A decrease in disposable income
• B)An increase in disposable income
• C)An increase in the interest rate
• D)Expectations of lower future prices
• E)An increase in net wealth

---

Definitions:

Need for Closure

The desire to find an answer or to come to a decision quickly in order to alleviate uncertainty and ambiguity.

Ambiguity

The presence of uncertainty or vagueness in meaning in expressions or situations.

Need for Cognition

A psychological tendency to engage in and enjoy effortful cognitive activities.

Effortful Thinking

The process of engaging in mental activities that require significant cognitive resources, as opposed to automatic or effortless thinking.