What is the effect of an increase in expected future income on the consumption function?An increase in expected future incomeO A. creates a rightward movement along the consumption functionB. shifts the consumption function upwardC. creates a leftward movement along the consumption functionO D. decreases consumption expenditureClick to select your answer.

Increase in expected future income have certain effect on current consumption.

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What is the effect of an increase in expected future income on the consumption function?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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What is the effect of an increase in expected future income on the consumption function?
An increase in expected future income
O A. creates a rightward movement along the consumption function
B. shifts the consumption function upward
C. creates a leftward movement along the consumption function
O D. decreases consumption expenditure
Click to select your answer.

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