Patch Grove Analytics is evaluating candidates for an economic analyst internship. To demonstrate his grasp of the effects of consumer behavior on aggregate demand, a candidate makes the following statements during his interview: Statement 1: The wealth effect occurs when consumers feel wealthier at higher price levels because their wages will also increase, and spend more in the current period as a result. Statement 2: Intertemporal substitution accounts for consumers’ tendency to increase their planned purchases in the current period and decrease planned future purchases when interest rates increase. Are these two statements correctStatement 1 Statement 2（）①A. IncorrectIncorrect ②B. IncorrectCorrect ③C. Correct Incorrect
A. ①
B. ②
C. ③
参考答案：A
解析：
Both statements are incorrect. The wealth effect causes real consumption spending to decrease at higher price levels because consumers have less wealth in real terms, and consequently spend less. When interest rates increase, consumers spend less in the current period as they delay purchases until future periods. They substitute purchases later for purchases now (intertemporal substitution).