If Consumers Experience an Decrease in Lifetime Income, Current Spending

question 111

Multiple Choice

If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________.

• A) decrease; decrease; decrease
• B) increase; decrease; decrease
• C) increase; decrease; increase
• D) increase; increase; decrease
• E) decrease; increase; increase

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Definitions:

Napoleon III

Nephew of Napoleon Bonaparte who became the Emperor of France (1852-1870), known for his expansionist policies and the modernization of the French economy.

Armistice

An agreement made by opposing sides in a conflict to stop fighting for a certain period, a truce often preceding a formal peace treaty.

Austria

A landlocked country in Central Europe, known for its cultural heritage, historical significance, and alpine landscapes.

Otto Von Bismarck

A Prussian statesman who engineered the unification of Germany in 1871 and served as its first Chancellor.