The Following Questions Refer to the graph below. -A change in consumption from C_E to C_F could be caused by which of the following? A)The bequest effect B)The retirement effect C)The wealth substitution effect D)All of the above E)None of the above

Question

Quizplus · Accepted Answer

The movement from C_E to C_F could be caused by the wealth substitution effect, where an increase in wealth leads to an increase in consumption. The bequest effect and retirement effect would not be direct factors in this specific scenario.

The Following Questions Refer to the Graph Below