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:

Sharing Economy

An economic model defined by the sharing of resources and services, often facilitated by community-based online platforms, to reduce waste and increase efficiency.

Blurring Of Boundary

The phenomenon where the lines or distinctions between different categories, such as work and home life or genres and media, become less clear.

Consumer Behaviour

The study of how individual customers, groups, or organizations select, buy, use, and dispose products, services, ideas, or experiences to satisfy their needs and desires.

Social Media

platforms and technologies that enable users to create, share content, or participate in social networking.