Any increase in nonlabor income unambiguously leads to a decrease in consumption and a decrease in labor supply.

Name: Any increase in nonlabor income unambiguously leads to a decrease in consumption and a decrease in labor supply.
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An increase in nonlabor income can actually increase consumption, as people have more disposable income to spend. However, it may decrease labor supply if people choose to work fewer hours or not at all due to the increase in income.

Any Increase in Nonlabor Income Unambiguously Leads to a Decrease