Question: Draw the consumption function and label each axis. Show the effect of an increase in income on consumption spending. Does the change in income cause

Draw the consumption function and label each axis. Show the effect of an increase in income on consumption spending. Does the change in income cause a movement along the consumption function or a shift of the consumption function? How would an increase in expected future income or an increase in household wealth affect the consumption function? Would these increases cause a movement along the consumption function or a shift of the consumption function? Briefly explain.

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