Because of recent corporate downsizing, Chuck loses his job.The most likely effect on his consumption function is a(n)
A)movement downward along the function.
B)shift upward of the function.
C)shift downward of the function.
D)increase in consumption expenditures.

Question

Quizplus · Accepted Answer

Chuck losing his job means he has less income, which will likely lead to a decrease in his consumption.

Because of Recent Corporate Downsizing, Chuck Loses His Job