In a Simple Macro Model, a Decrease in Households' Wealth

Multiple Choice

In a simple macro model, a decrease in households' wealth is generally assumed to

A) cause an upward shift in the consumption function.
B) affect only saving, not consumption.
C) cause no change in consumption because consumption is a function of disposable income only.
D) cause a downward shift in the consumption function.
E) cause no change in consumption because the decline is always expected.