Which of the following could be a cause of consumption decreasing?
A) Real income increases.
B) Interest rates increase.
C) Wealth increases.
D) Expected future income increases.

Name: Which of the following could be a cause of consumption decreasing? A) Real income increases. B) Interest rates increase. C) Wealth increases. D) Expected future income increases.
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Question

Quizplus · Accepted Answer

Higher interest rates can lead to decreased consumption as borrowing becomes more expensive and saving becomes more attractive.

Which of the Following Could Be a Cause of Consumption