The Redistribution Effect Refers to the Situation in Which

Multiple Choice

The redistribution effect refers to the situation in which

A) a redistribution policy might raise consumption because poorer people spend a greater percentage of their income than the rich.
B) rising prices might make creditors feel wealthier and encourage them to increase their spending.
C) rising prices might make debtors feel less wealthy and encourage them to cut back on their spending.
D) falling prices might make debtors feel less wealthy and encourage them to cut back on their spending.