Question 1
A $1.00 change in the value of stocks changes consumption and investment by about
◦ $1.10.
◦ $1.00.
◦ $.10.
◦ $.04.
Question 2
When there is a stock market crash
◦ wealth and consumption rise.
◦ wealth rises and consumption falls.
◦ wealth falls and consumption rises.
◦ wealth and consumption fall.