If there were an increase in each of the following, which of them would cause an increase in the consumption function? a. Autonomous net taxesb. The interest ratec. Consumer optimism or confidenced....

If there were an increase in each of the following, which of them would cause an increase in the consumption function?

a. Autonomous net taxes
b. The interest rate
c. Consumer optimism or confidence
d. The price level

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If all of the things that you mention in this question were to rise, only one of them would have a positive effect on the consumption function.  All of the others would cause consumption to decline.  Only an increase in consumer confidence would cause consumption to rise.

One way to express the consumption function is to say that consumption = autonomous consumption + (marginal propensity to consume x disposable...

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