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The Decrease in Lifetime Wealth Affects Consumption Demand by

Question 37

Multiple Choice

The decrease in lifetime wealth affects consumption demand by

A) -MPC(G₂ - G1) .
B) MPC(G₂ - G₁) .
C) r(G₂ - G₁) .
D) (1 - MPC) (G2 - G₁) .
E) does not affect it.

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