Multiple Choice
An increase in first-period income results in
A) an increase in first-period consumption, an increase in second-period consumption, and a decrease in saving.
B) a decrease in first-period consumption, a decrease in second-period consumption, and an increase in saving.
C) an increase in first-period consumption, an increase in second-period consumption, and an increase in saving.
D) a decrease in first-period consumption, an increase in second-period consumption, and an increase in saving.
E) an increase in first-period consumption, a decrease in second-period consumption, and an increase in saving.
Correct Answer:
Verified
Correct Answer:
Verified
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