If households' disposable income decreases, then
A) households' saving will decrease.
B) households' saving will increase.
C) investment will increase.
D) Both B and C are correct.
A
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The marginal cost of production that is borne by the entire society is called the marginal
A) private cost. B) social cost. C) external cost. D) public cost. E) user cost.
The concept of economic rent can be applied to
A) land only. B) land and natural resources only. C) land, natural resources, and paintings by dead masters only. D) any resource that cannot be replicated exactly.
When economists talk about innovation, they refer to
a. the relationship between growth and employment b. one of the basic problems in economics c. the relationship between technology and scarcity d. the relationship between growth and scarcity e. ideas that eventually take the form of new applied technology
When marginal cost is constant and zero, the interdependence between Cournot duopolists causes
A. prices and quantities to be the same as they would be in the monopoly case. B. price to be 1/3 higher and quantity to be 1/3 lower than the corresponding values in the monopoly case. C. price to be 1/3 lower and quantity to be 1/3 higher than the corresponding values in the monopoly case. D. prices and quantities to be the same as they would be in the perfectly competitive case.