Other things held constant,an increase in consumption spending implies

Question

Quizplus · Accepted Answer

When consumption spending increases, it means people are spending more and saving less. Therefore, option A is the correct answer. Option B is incorrect as it is not related to consumption spending. Option C is incorrect because consumption spending doesn't indicate anything about future living standards. Option D is incorrect because consumption spending is a component of GDP and is generally indicative of economic growth.

Other Things Held Constant,an Increase in Consumption Spending Implies