Recall Application 1, "Falling Home Prices, the Wealth Effect, and Decreased

Recall Application 1, "Falling Home Prices, the Wealth Effect, and Decreased Consumer Spending," to answer the
following questions:
-According to the application, estimates predicted that a decrease in wealth by $1 would cause a decrease in consumption by:

A) $0.12 - $0.17.
B) $0.02 - $0.07.
C) $0.25 - $0.37.
D) $0.20 - $0.70.