An increase in planned savings, all else held constant, will always result in
a. a slowdown in the circular flow of income.
b. an increase in the circular flow.
c. an increase in planned investment spending.
d. an increase in the price level.
a. a slowdown in the circular flow of income.
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The demand for a necessity generally is
A) very elastic. B) infinitely elastic. C) unaffected by income. D) inelastic. E) unit elastic.
Refer to Figure 3-1. A decrease in the price of a complementary good would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
A pair of jeans is rival but non-excludable
a. True b. False Indicate whether the statement is true or false
If the consumption of good generates an external benefit, then the market equilibrium quantity will be:
A. socially optimal. B. less than the socially optimal quantity. C. equal to zero. D. greater than the socially optimal quantity.