A higher interest rate will:

A) shift the consumption function upward.
B) shift the consumption function downward.
C) make the consumption function steeper.
D) make the consumption function flatter.
E) cause an upward movement along the consumption function.

Consumption Function

A macroeconomic expression that defines the relationship between total consumer expenditures and gross national income, indicating how income affects spending patterns.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, charged by lenders to borrowers for the use of assets.