The Decrease in Lifetime Wealth Affects Consumption Demand by
A) $- \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)$

The decrease in lifetime wealth affects consumption demand by

A) $- \mathrm { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)$ .
B) $\operatorname { MPC } \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)$ .
C) $( 1 - \mathrm { MPC } ) \left( \mathrm { G } _ { 2 } - \mathrm { G } _ { 1 } \right)$ .
D) $r \left( \mathrm { G } _ { 2 } - \mathrm { G } 1 \right)$ .
E) does not affect it.

Correct Answer:

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