2. List four factors that could shift the consumption schedule except disposable income. Shifts in the consumption schedule could be caused by any of the non-income determinants of consumption and saving. This includes changes in any of the following: а) b) c) d) When wealth increases, it shifts the consumption schedule ( upward , downward ) as people consume more at each level of disposable income. There is an opposite effect on saving. The saving schedule shifts ( upward, downward ) at each level of disposable income because people save less. ) effect occurs when there is a significant drop in consumer wealth that A(r_ will shift the consumption schedule downward. During the Great Recession of 2007–2009 there was a "reverse wealth effect" because as wealth declined during the recession, people consumed less and saved ( more, less ). Such a situation creates a paradox of thrift in which more saving helps individual household budgets, but as people cut back on their consumption and (increase, decrease_) their saving, the collective effect on the economy is an adverse one that worsened the recession. W

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2. List four factors that could shift the consumption schedule except disposable income.
Shifts in the consumption schedule could be caused by any of the non-income determinants of
consumption and saving. This includes changes in any of the following:
а)
b)
c)
d)
When wealth increases, it shifts the consumption schedule (upward , downward ) as people consume
more at each level of disposable income. There is an opposite effect on saving. The saving
schedule shifts (upward , downward ) at each level of disposable income because people save less.
) effect occurs when there is a significant drop in consumer wealth that
A(r
will shift the consumption schedule downward. During the Great Recession of 2007–2009 there
was a "reverse wealth effect" because as wealth declined during the recession, people consumed
less and saved ( more, less ). Such a situation creates a paradox of thrift in which more saving
helps individual household budgets, but as people cut back on their consumption and (increase,
decrease ) their saving, the collective effect on the economy is an adverse one that worsened the
W
recession.
Transcribed Image Text:2. List four factors that could shift the consumption schedule except disposable income. Shifts in the consumption schedule could be caused by any of the non-income determinants of consumption and saving. This includes changes in any of the following: а) b) c) d) When wealth increases, it shifts the consumption schedule (upward , downward ) as people consume more at each level of disposable income. There is an opposite effect on saving. The saving schedule shifts (upward , downward ) at each level of disposable income because people save less. ) effect occurs when there is a significant drop in consumer wealth that A(r will shift the consumption schedule downward. During the Great Recession of 2007–2009 there was a "reverse wealth effect" because as wealth declined during the recession, people consumed less and saved ( more, less ). Such a situation creates a paradox of thrift in which more saving helps individual household budgets, but as people cut back on their consumption and (increase, decrease ) their saving, the collective effect on the economy is an adverse one that worsened the W recession.
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