In a Simple Macro Model,a Decrease in Households' Wealth Is

question 17

Multiple Choice

In a simple macro model,a decrease in households' wealth is generally assumed to

• A)cause no change in consumption because consumption is a function of disposable income only.
• B)cause no change in consumption because the decline is always expected.
• C)cause a downward shift in the consumption function.
• D)cause an upward shift in the consumption function.
• E)affect only saving,not consumption.

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Definitions:

Risk Assessment

A systematic process of evaluating the potential risks that may be involved in a projected activity or undertaking.

Hazards

Potentially dangerous situations or materials that can cause harm or damage to people, property, or the environment.

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Individuals or groups who have the authority to make choices that influence outcomes in a variety of contexts, such as organizational or governmental settings.

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