Question

What does the theory of consumption spending predict should have happened to real saving during the particular three-month period that Price was considering? Explain briefly.

Short answer

The solution for this question is the consumption curve shifts upwards.

Step-by-step solution

Introduction

The budget constraint curve, often known as the $C+1+G+X$ curve, is drawn with the price level held constant. The $HUKU$ method pushes consumers to save more and consume less in order to build up their savings. This will assist them in covering the costs of health-care services.

Conclusion

As a result of this system, the consumption curve will move downwards, and the curve depicting $C+1+G+X$ will shift downwards as well. The absence of this system, on the other hand, will stimulate additional consumption, shifting the curve $C+1+G+X$ upward.