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When Consumers Save Their Income Instead of Spending It

Question 76

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 savings with consumer savings.
D) the loanable funds market can rescue Say's Law.
E) there must be less economic growth.

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