An upward shift in the consumption schedule, other things being equal, could be caused by households a. becoming optimistic about the state of the economy. b. becoming pessimistic about the state of the economy. c. expecting future income and wealth to decline. d. doing none of the above.

A consumption schedule is a graph or table that shows the relationship between consumption expenditure and disposable income in an economy. It represents the consumer behavior and illustrates how much of their income households are spending and how much they are saving.

There are several factors that can influence the consumption schedule, such as disposable income, consumer confidence, interest rates, expectations of future income and wealth, and government policies.

a. Becoming optimistic about the state of the economy: Optimism about the economy generally means that households would be more willing to spend their money on goods and services. As a result, consumption expenditure would increase, causing an upward shift in the consumption schedule. b. Becoming pessimistic about the state of the economy: Pessimism about the economy typically leads households to be more cautious with their spending, as they would be uncertain about their future income and job security. Therefore, consumption expenditure would decrease in this case, causing a downward shift in the consumption schedule. c. Expecting future income and wealth to decline: If households expect their future income and wealth to decrease, they would likely cut back on their spending to save more for the uncertain times ahead. Consumption expenditure would decrease, resulting in a downward shift in the consumption schedule. d. Doing none of the above: If none of these factors play a role, we cannot determine the direction of the shift in the consumption schedule based on the information given.

Based on our analysis of each option, we find that the correct answer is: a. becoming optimistic about the state of the economy An upward shift in the consumption schedule occurs because households are more willing to spend their money on goods and services due to their optimism about the economy.