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

Question

Quizplus · Accepted Answer

A decrease in wealth would lead to a decrease in consumption expenditure, resulting in a movement downward along the consumption function. This is represented by a shift in the consumption function downward, as shown by answer choice D.

A Decrease in Wealth ________ Consumption Expenditure and ________

A Decrease in Wealth Consumption Expenditure and