In 2008-2009,the falling stock market reduced wealth of U.S.households,causing the United States:
A) to move down along its consumption schedule.
B) to shift its consumption schedule downward.
C) to move up along its consumption schedule.
D) to shift its consumption schedule upward.

Question

Quizplus · Accepted Answer

The reduction in wealth due to the falling stock market would cause households to consume less at each level of income, shifting the consumption schedule downward.

In 2008-2009,the Falling Stock Market Reduced Wealth of U