Figure 13-3 -Refer to Figure 13-3. Suppose the Consumption Function Is Given

question 92

Multiple Choice

Figure 13-3
-Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. Which of the following will cause a downward shift to curve C₁?

• A) a stock market crash that decreases household wealth
• B) a decrease in price level
• C) an increase in withholding tax rate
• D) rising optimism about economic conditions

---

Definitions:

Evolutionary Perspective

A theoretical approach that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Pair-bond

A strong and lasting relationship established between two individuals, especially referring to a mating or marital relationship in humans or animals.

Cooperative Nurture

The practice of raising or supporting others in a manner that emphasizes collaboration and mutual aid.

Marital Success

The extent to which a marriage fulfills the emotional, social, and financial needs of the partners involved.