An unexpected decrease in nonlabor income will have ________ effect on a household's consumption.

Name: An unexpected decrease in nonlabor income will have ________ effect on a household's consumption.
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Question

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Nonlabor income (such as investment income or government transfers) is an important determinant of household consumption, so an unexpected decrease in nonlabor income will likely result in a decrease in consumption. Therefore, the effect is negative.

An Unexpected Decrease in Nonlabor Income Will Have ________ Effect