15. Income and Consumption
Determinants of Consumption and Saving
Multiple Choice
Multiple ChoiceThe country of Consumptia has had a booming economy for nearly a decade. However, prices have been rising faster than income, leading analysts to believe that a recession is on the horizon. If the citizens of Consumptia expect a recession in the coming years, then:
A
Current consumption will increase
B
Current consumption will decrease
C
Current savings will decrease
D
Recessions are not related to the consumption/savings functions.
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