Question
An increase in consumer wealth shifts the consumption function downward.
True
False
True
False
Answers
GPT-5 mini
False.
An increase in consumer wealth raises autonomous consumption (people spend more at any given income), so the consumption function shifts upward (higher intercept), not downward.
An increase in consumer wealth raises autonomous consumption (people spend more at any given income), so the consumption function shifts upward (higher intercept), not downward.