Personal consumption expenditures would likely increase if there were a decrease in:
A) households' incomes.
B) saving by households.
C) borrowing by households.
D) transfer payments to households.

Question

Quizplus · Accepted Answer

A decrease in saving by households would likely lead to an increase in personal consumption expenditures, as households would have more disposable income available to spend rather than save.

Personal Consumption Expenditures Would Likely Increase If There Were a Decrease