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
