Dissaving occurs when

A. consumption spending exceeds real disposable income.
B. the average saving rate for the nation unexpectedly falls.
C. households reduce their planned monthly saving.
D. households deposit unusually large amounts of money into their savings account.


Answer: A

Economics

You might also like to view...

Private solutions to externalities are most effective if ________

A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities

Economics

Suppose that domestic investment in Canada is 10.7% of GDP, and Canadian national savings is 13% of GDP. What is Canada's foreign investment as a percentage of GDP?

A) 1.15% B) 2.3% C) 15.3% D) 23.7%

Economics

Use the figure below to calculate the cross-price elasticity of demand for good X when the price of good Y increases from $12 to $14:

A. 0.64 B. 0.20 C. 15.38 D. 0.42 E. 2.00

Economics

Which of the following causes a movement upward along the aggregate demand curve?

A. a fall in wages B. an increase in the price level C. an increase in government spending D. an increase in the money supply

Economics