Multiple Choice
The average price of a share of stock on the New York Stock Exchange falls by 30 percent. Other things being equal, we would expect
A) an increase in the marginal propensity to consume.
B) a decrease in the marginal propensity to consume.
C) a shift up of the consumption function.
D) a shift down of the consumption function.
Correct Answer:
Verified
Correct Answer:
Verified
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