All else being equal, if consumption declines as a share of GDP, then
A)people must be saving less.
B)people will consume less in the future.
C)there must have been an increase in GDP.
D)people will consume more in the future.
E)there must have been a decrease in GDP.

Question

Quizplus · Accepted Answer

If consumption declines as a share of GDP, it implies that people are saving more, which could lead to increased consumption in the future as savings are eventually spent.

All Else Being Equal, If Consumption Declines as a Share