Multiple Choice
Suppose a fall in stock prices makes people feel poorer.The decrease in wealth would induce people to
A) decrease consumption,shown as a movement to the left along a given aggregate-demand curve.
B) increase consumption,shown as a movement to the right along a given aggregate-demand curve.
C) decrease consumption,shown by shifting the aggregate-demand curve to the left.
D) increase consumption,shown by shifting the aggregate-demand curve to the right.
Correct Answer:
Verified
Correct Answer:
Verified
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