Which of the Following Is Evidence That Consumption Depends on Total

Multiple Choice

Which of the following is evidence that consumption depends on total wealth, and not just on current income?

A) A series of phased- in tax cuts announced by the government causes little change in consumption.
B) People save very little for their retirement.
C) Banks will not always lend money to those who want to consume more than their income.
D) The anticipation of future financial distress makes some people reluctant to borrow.
E) A decrease in consumer confidence, with unchanged current income, often causes total consumption spending to fall.