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Blessing Ogbonna
on Oct 13, 2024

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The level of consumption _____ as the stock of liquid assets in the hands of consumer rises and it ____ as the level of disposable income rises.

A) rises,rises
B) falls,falls
C) rises,falls
D) falls,rises

Liquid Assets

Refers to assets that can be quickly and easily converted into cash without significant loss in value.

Disposable Income

Monetary resources for household use in saving and spending subsequent to income tax deductions.

Consumption

The act of using goods and services for personal needs or wants, including basics like food and housing to luxury items.

  • Examine the impact of liquid assets and credit on consumer spending behavior.
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AE
April EnriquezOct 19, 2024
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