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A Sudden Decrease in Consumers' Wealth-Resulting, for Example, from a Stock

Question 198

Multiple Choice

A sudden decrease in consumers' wealth-resulting, for example, from a stock market crash-would initially cause a(n)


A) downward movement along the consumption function.
B) downward shift of the consumption function.
C) upward movement along the consumption function.
D) upward shift of the consumption function.

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