Increases in ________ typically lead to decreases in consumption
A)the interest rate
B)disposable income
C)autonomous consumption
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Increases in the interest rate typically lead to decreases in consumption because higher interest rates make saving more attractive than spending and borrowing more expensive, thus reducing consumers' willingness or ability to consume.

Increases in ________ Typically Lead to Decreases in Consumption