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Factors that cause shifts and movements on the consumption function?

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Factors that cause shifts and movements on the consumption function?

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  1. Factors that cause movements along or on the consumption function are: Personal Income (rather household income ), Taxes on income, Disposable income: because Consumption function relates consumption expenditure to National  income, rather disposable income after incomes tax.

    Factors that cause shift in consumption function are the marginal propensity to consume, the consumption habits ( some communities are highly materilistic consumption oriented while others believe in building more saving for the future and transfer of wealth to future generations), age structure, income distribution, price index, etc.

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