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The Decrease in Lifetime Wealth Affects Consumption Demand by
A) MPC(G2G1)- \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)

Question 15

Multiple Choice

The decrease in lifetime wealth affects consumption demand by


A) MPC(G2G1) - \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right) .
B) MPC(G2G1) \operatorname { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right) .
C) (1MPC) (G2G1) ( 1 - \mathrm { MPC } ) \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right) .
D) r(G2G1) r \left( \mathrm { G } _ { 2 } - \mathrm { G } 1 \right) .
E) does not affect it.

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