The Decrease in Lifetime Wealth Affects Consumption Demand by

question 37

Multiple Choice

The decrease in lifetime wealth affects consumption demand by

• A) -MPC(G₂ - G1).
• B) MPC(G₂ - G₁).
• C) r(G₂ - G₁).
• D) (1 - MPC)(G2 - G₁).
• E) does not affect it.

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