The wealth effect implies that:
A)when consumer wealth goes up, consumers spend more
B)when the price level decreases, consumer purchasing power goes up, and therefore consumers spend more
C)when consumers are wealthier, they spend more, and therefore the price level increases
D)when the price level decreases, consumers save more, and therefore become wealthier

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The Answer of The wealth effect implies that:
A)when consumer wealth goes up, consumers spend more
B)when the price level decreases, consumer purchasing power goes up, and therefore consumers spend more
C)when consumers are wealthier, they spend more, and therefore the price level increases
D)when the price level decreases, consumers save more, and therefore become wealthier

The Wealth Effect Implies That