A One-Unit Decrease in Current Income, and a One-Unit Increase

question 53

Multiple Choice

A one-unit decrease in current income, and a one-unit increase in lifetime wealth

• A) both have no effect on the consumer's behaviour.
• B) have the same effect on the consumer's current and future consumption.
• C) have different effects on the consumer's current and future consumption.
• D) will both have the same effect on savings.
• E) imply that future consumption goes down.

---

Definitions:

Radial Pulse

The pulse felt over the radial artery at the wrist, commonly used to measure heart rate.

Heart

A muscular organ in most animals, which pumps blood through the circulatory system by rhythmic contraction and dilation.

Rate

The speed or frequency at which an event or action occurs within a specified period.

Capillary Refill Time

The time taken for color to return to an external capillary bed after pressure is applied, indicating the circulatory status.