Asked by
hifazat ahmad
on Nov 11, 2024Verified
A decrease in net wealth will _____.
A) shift the consumption function downward
B) make the consumption function steeper
C) cause an upward movement along the consumption function
D) cause a downward movement along the consumption function
E) make the consumption function flatter
Net Wealth
Net wealth represents the total value of all financial and non-financial assets owned by an individual, corporation, country, or other entity, minus any liabilities.
Consumption Function
An economic formula that represents the relationship between total consumption and gross national income, indicating how spending is expected to increase with income.
- Analyze reasons behind the modification of consumption behavior.
Verified Answer
AB
Learning Objectives
- Analyze reasons behind the modification of consumption behavior.