Multiple Choice
In a simple macro model,an increase in households' wealth is generally assumed to
A) cause no change in desired consumption because consumption is a function of disposable income only.
B) cause no change in desired consumption because the increase is always expected.
C) cause a downward shift in the aggregate consumption function.
D) cause an upward shift in the aggregate consumption function.
E) affect only desired saving,not desired consumption.
Correct Answer:

Verified
Correct Answer:
Verified
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