how-might-a-sudden-increase-in-consumer-confidence-affect-the-consumption-functi

Question

How might a sudden increase in consumer confidence affect the consumption function?

Accepted Answer

It is likely to shift the consumption function upward as consumers spend more.

Answer

It will have no effect on the consumption function.

Answer

It will only affect saving, not consumption.

Answer

It is likely to shift the consumption function downward as consumers save more.