Which statement is true? (LO6)

a) Consumption spending accounts for about 60 percent of our GDP.

b) The basic long-term trend in consumption spending as a percentage of GDP has been downward.

c) The wealth effect accounts for some additional consumption when people perceive themselves to be wealthier.

d) Were it not for the wealth effect, most Americans, especially those who owned homes and corporate stock, would have cut back on their consumption even more, making the Great Recession more severe.