Solved

When Consumers Save Their Income Instead of Spending It

Question 204

Multiple Choice

When consumers save their income instead of spending it,


A) Say's Law cannot be true.
B) there must be a mismatch between short-run aggregate supply and aggregate demand.
C) the interest rate in the loanable funds market can match business investment spending with consumer savings.
D) there must be less economic growth.
E) all of the above are true.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions