Which of the following will cause an increase in current consumption?
A)an increase in current disposable income
B)an increase in financial wealth
C)an increase in human wealth
D)all of the above
E) both B and C

Question

Quizplus · Accepted Answer

All of the above choices will cause an increase in current consumption.

- An increase in current disposable income: When people have more disposable income, they are likely to spend more money on goods and services, which leads to an increase in current consumption. 
- An increase in financial wealth: When people have more financial wealth, they may feel more confident in their financial position and spend more money, which leads to an increase in current consumption. 
- An increase in human wealth: When people have more human wealth (e.g., skills, education), they may be able to earn more income and spend more money, which leads to an increase in current consumption.

Which of the Following Will Cause an Increase in Current