An increase in household saving causes consumption to
a. rise and aggregate demand to increase.
b. rise and aggregate demand to decrease.
c. fall and aggregate demand to increase.
d. fall and aggregate demand to decrease.
d
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Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck. If she buys one for $12,000, her ________ would be ________.
A. cost; $15,000 B. economic surplus; $12,000 C. benefit; $12,000 D. economic surplus; $3,000
Answer the following statement(s) true (T) or false (F)
1. Bonds are considered riskier than stocks. 2. Preferred stockholders are paid before bondholders. 3. Common stock dividends do not vary based on profit. 4. Stockholders are the people who own corporations. 5. It is very difficult for an individual to own stock in a corporation.
Foreign investors owned _______% of the publicly held national debt in 1970.
Fill in the blank(s) with the appropriate word(s).
Consider the above parallel demand curves. Which curve is relatively more elastic at P1?
A. AA B. BB C. Cannot be determined D. Both have the same slope; therefore, both have the same elasticity.