Which of the following could cause a decrease in consumption?
A) Income increases.
B) Interest rates increase.
C) Wealth increases.
D) Expected future income increases.

Name: Which of the following could cause a decrease in consumption? A) Income increases. B) Interest rates increase. C) Wealth increases. D) Expected future income increases.
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Question

Quizplus · Accepted Answer

An increase in interest rates would make borrowing more expensive, which would lead to a decrease in consumption.

Which of the Following Could Cause a Decrease in Consumption