A Sudden Decrease in Consumers' Wealth-Resulting, for Example, from a Stock

question 198

Multiple Choice

A sudden decrease in consumers' wealth-resulting, for example, from a stock market crash-would initially cause a(n)

• A)downward movement along the consumption function.
• B)downward shift of the consumption function.
• C)upward movement along the consumption function.
• D)upward shift of the consumption function.

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Definitions:

Output Activity

Measures of the amount of work performed or products produced by a company or a specific process within a given period.