A professor declared "with the recent drop in the value of my stock portfolio,I will have to put off retirement by another two years." This decision reflects

Name: A professor declared "with the recent drop in the value of my stock portfolio,I will have to put off retirement by another two years." This decision reflects
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement reflects the income effect, as the drop in the value of the stock portfolio has reduced the professor's wealth and therefore their ability to retire.

A Professor Declared "With the Recent Drop in the Value