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

Question

Quizplus · Accepted Answer

A decrease in net wealth shifts the consumption function downward because it reduces the amount of consumption at any given level of disposable income.

A Decrease in Net Wealth Will _____