An increase in household wealth that creates a wealth effect would shift the
A)consumption schedule and the saving schedule upward.
B)consumption schedule and the saving schedule downward.
C)consumption schedule upward and the saving schedule downward.
D)consumption schedule downward and the saving schedule upward.

Question

Quizplus · Accepted Answer

An increase in household wealth typically leads to more consumption and less saving, shifting the consumption schedule upward and the saving schedule downward.

An Increase in Household Wealth That Creates a Wealth Effect