If Disposable Income Falls,consumption Expenditure Falls ________

question 66

Multiple Choice

If disposable income falls,consumption expenditure falls ________.

• A)by an amount that depends on the real interest rate
• B)so that planned expenditure remains constant
• C)by an amount smaller than the decrease in disposable income
• D)all of the above
• E)none of the above

---

Definitions:

Wage Increase

An adjustment upward in the wage rate, resulting in employees receiving more compensation for their work.

Status Quo Bias

A cognitive bias that explains individuals' preference for current circumstances to remain unchanged or for decisions to be made that do not alter the current state.

Super-Size

A term often associated with fast food, indicating an option to upgrade a meal to a larger size with more of the product.

Solar Panels

Devices that convert sunlight into electricity, using photovoltaic cells.