Refer to the given graph. A shift of the consumption schedule from C2 to C1 might be caused by a(n)
A) increase in real GDP.
B) reverse wealth effect, caused by a decrease in stock market prices.
C) decrease in income tax rates.
D) decrease in saving.

Question

Refer to the given graph. A shift of the consumption schedule from C2 to C1 might be caused by a(n)
A) increase in real GDP. 
B) reverse wealth effect, caused by a decrease in stock market prices. 
C) decrease in income tax rates. 
D) decrease in saving.

Quizplus · Accepted Answer

The Answer of  Refer to the given graph. A shift of the consumption schedule from C2 to C1 might be caused by a(n)
A) increase in real GDP. 
B) reverse wealth effect, caused by a decrease in stock market prices. 
C) decrease in income tax rates. 
D) decrease in saving.

Refer to the Given Graph