Refer to the above graph. A shift of the consumption schedule from C2 to C1 might be caused by a:
A)increase in real GDP.
B)reverse wealth effect, caused by a decrease in stock market prices.
C)decrease in income tax rates.
D)decrease in saving.
Answer:B
Refer to the above graph. A shift of the consumption schedule from C2 to C1 might be caused by a:
A)increase in real GDP. B)reverse wealth effect, caused by a decrease in stock market prices. C)decrease in income tax rates. D)decrease in saving.