In a Simple Macro Model,an Increase in Households' Wealth Is

question 155

Multiple Choice

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

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