Explain why current consumption might change even if current income does not change
What will be an ideal response?
C also depends on wealth. If any of the determinants of wealth change, without current disposable income changing, individuals will change current consumption. In short, there are other determinants of current consumption.
You might also like to view...
The fair insurance price is where ____________, where Y is the income that is lower than the income involving the fair insurance
Fill in the blank(s) with the appropriate word(s).
Which of the following would lead to a change in the money measure, M1?
A) a customer purchases music downloads with a debit card B) a customer withdraws funds from her checking account to purchase a 6-month time deposit C) depositing a paycheck drawn against Bank of America into your checking account in Wells Fargo Bank D) interest payments by the Treasury on its debt