Multiple Choice
Suppose a fall in stock prices makes people feel less wealthy. What are the effects of this decrease in wealth?
A) decreased consumption, shown as a movement to the left along a given aggregate-demand curve
B) increased consumption, shown as a movement to the right along a given aggregate-demand curve
C) decreased consumption, which shifts the aggregate-demand curve to the left
D) increased in consumption, which shifts the aggregate-demand curve to the right
Correct Answer:
Verified
Correct Answer:
Verified
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