When the Economy Enters an Expansion of a Business Cycle

Multiple Choice

When the economy enters an expansion of a business cycle, households become more optimistic about future disposable income.The increase in optimism leads to

A) a shift upward of the consumption function.
B) an increase in consumption expenditures.
C) no change in the level of consumption expenditures.
D) a movement upward along the consumption function.
E) a movement downward along the consumption function.