Question: An upward shift in the consumption function, other things being equal, could be caused by households a. becoming optimistic about the state of the economy.

An upward shift in the consumption function, other things being equal, could be caused by households

a. becoming optimistic about the state of the economy.

b. becoming pessimistic about the state of the economy.

c. expecting future income and wealth to decline.

d. None of the answers above are correct.

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