A decrease in wealth
A)increases; shifts the consumption function upward
B)decreases; shifts the consumption function downward
C)decreases; shifts the consumption function upward
D)decreases; results in a movement downward along the consumption function
E)increases; shifts the consumption function downward

Question

Quizplus · Accepted Answer

A decrease in wealth reduces consumer spending, leading to a downward shift in the consumption function.

A Decrease in Wealth