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Determinants of Consumption and Saving
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Determinants of Consumption and Saving
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15. Income and Consumption / Determinants of Consumption and Saving / Problem 9
Problem 9
If stock prices unexpectedly increase, what is the likely effect on the consumption function?
A
The consumption function will remain unchanged.
B
The consumption function will shift downward.
C
The consumption function will become steeper.
D
The consumption function will shift upward.
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