Multiple Choice
Suppose a fall in stock prices makes people feel poorer. What are the effects of this decrease in wealth?
A) a decrease in consumption, shown as a movement to the left along a given aggregate demand curve
B) an increase in consumption, shown as a movement to the right along a given aggregate demand curve
C) a decrease in consumption, which shifts the aggregate demand curve to the left
D) an increase in consumption, which shifts the aggregate demand curve to the right
Correct Answer:
Verified
Correct Answer:
Verified
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