Assuming that prices remain constant, suppose that consumer assets and wealth lose value. The aggregate demand curve will undergo a:
A) shift to the left.
B) movement upward.
C) shift to the right.
D) movement downward.

Question

Quizplus · Accepted Answer

When consumer assets and wealth lose value, people will have less money to spend on goods and services. This will lead to a decrease in aggregate demand and cause the demand curve to shift to the left.

Assuming That Prices Remain Constant, Suppose That Consumer Assets and Wealth