Which of the Following Changes Will Shift the Consumption Function

question 368

Multiple Choice

Which of the following changes will shift the consumption function upward?

• A) an increase in wealth
• B) a decrease in wealth
• C) a decrease real disposable income
• D) an increase in real disposable income

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Definitions:

External Causes

Factors outside an individual that influence behaviors, events, or outcomes, contrasting with internal factors that derive from within the person.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal expectations.

Expected Behavior

Actions or reactions that are anticipated in a given context based on societal norms, rules, or personal standards.

Great-person Theory

A theory of leadership that suggests history is shaped by the actions of great individuals who possess unique characteristics and talents.