If expectations about future income change, there is
A) a decrease saving if people expect income to decrease in the future.
B) a decrease in saving if people expect income to increase in the future.
C) an increase in saving if people expect income to increase in the future.
D) no change in saving until income actually changes.
E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
B
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For a firm in monopolistic competition, the efficient scale is the amount of output at which ________ is a minimum
A) fixed cost B) average total cost C) average variable cost D) average fixed cost E) marginal cost
The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
Monopoly power ________ guarantee a profit for a producer because ________ may be too low for the product.
Fill in the blank(s) with the appropriate word(s).
The full-employment rate of output can
A. be surpassed only when firms are not yet producing at full capacity. B. not be surpassed in either the short run or the long run. C. be surpassed in the long run only if input prices are flexible. D. be surpassed only in the short run.