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A Major Employer in a Small Town Announces Upcoming Major

Question 195

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A major employer in a small town announces upcoming major layoffs of employees.What should we expect to happen to the consumption functions of the affected employees?


A) the consumption functions will shift upward.
B) most employees will move upward along their consumption functions 
C) the consumption functions will shift downward 
D) most employees will move downward along their consumption functions

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