An increase in net wealth will _____
A) increase consumption and increase saving.
B) increase saving and decrease consumption.
C) decrease consumption and decrease saving.
D) increase consumption and decrease saving.
E) have no effect on consumption.

Question

Quizplus · Accepted Answer

An increase in net wealth typically leads to an increase in consumption as people feel wealthier and more financially secure, which often results in a decrease in saving since they rely on their increased wealth.

An Increase in Net Wealth Will _____