Which of the following is evidence that consumption depends on total wealth,and not just on current income?
A) people save very little for their retirement.
B) the pre-announced phased-in tax cuts of 1981-83 caused little change in consumption in 1981.
C) a drop in consumer confidence,with unchanged current income,often causes total consumption spending to fall.
D) all of the above
E) none of the above
Correct Answer:
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