Which of the Following Is Likely to Occur as a Result

Multiple Choice

Which of the following is likely to occur as a result of falling incomes?

A) Reduced incomes will lead to reduced savings and, as a result, a reduction in capital formation.
B) Reduced incomes will lead to a decrease in spending on consumption but an increased spending on research and development.
C) Reduced incomes will result in a decrease in the availability of labour inputs for production.
D) Reduced incomes will lead to increased savings and, as a result, an increase in capital formation.