Which of the following is a reason that consumption depends on current income, and not just on total wealth?

A) Low-income people may prefer to postpone some consumption until later years when their incomes are higher.

B) The anticipation of future financial distress makes some people reluctant to borrow.

C) Banks will not always lend money to those who want to consume more than their income.

D) all of the above

E) none of the above

Answer rating: 100% (QA)

The connection between the consumer spending and the different factors that influence it is known as ... View the full answer