The Decrease in Lifetime Wealth Affects Consumption Demand by
A) $- \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)$

question 15

Multiple Choice

The decrease in lifetime wealth affects consumption demand by

• A) \(- \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)\).
• B) \(\operatorname { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)\).
• C) \(( 1 - \mathrm { MPC } ) \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)\).
• D) \(r \left( \mathrm { G } _ { 2 } - \mathrm { G } 1 \right)\).
• E) does not affect it.

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