In a Simple Macro Model, an Increase in Households' Wealth

Multiple Choice

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

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