Final answer:
If people become pessimistic about the state of the economy, it can cause a downward shift in the consumption function. Other factors, such as a threat of war or a decrease in overall savings in the economy, can also cause a downward shift in the consumption function.
Step-by-step explanation:
If people become pessimistic about the state of the economy, it can cause a downward shift in the consumption function. If people become pessimistic about the state of the economy, it can cause a downward shift in the consumption function. Other factors, such as a threat of war or a decrease in overall savings in the economy, can also cause a downward shift in the consumption function.
This means that people may decrease their spending and consumption in response to their pessimism. Other factors, such as a threat of war or a decrease in overall savings in the economy, can also cause a downward shift in the consumption function. These shifts can occur either by moving the entire consumption function up or down, or by changing the slope of the function.