When housing prices increase, household wealth ________, and consumption ________.
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
Correct Answer:
Verified
Q17: All of the following would be included
Q18: The four components of planned aggregate expenditure
Q19: The decision about whether to change prices
Q20: If firms sell more output than expected,
Q21: As disposable income decreases, consumption:
A)increases.
B)decreases.
C)may either increase
Q23: The vertical intercept of the consumption function
Q24: In the Keynesian model, consumption depends on:
A)whether
Q25: Planned aggregate expenditure (PAE )equals:
A)C + I
Q26: The consumption function is the relationship between consumption
Q27: The two parts of the Keynesian consumption
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