Within the framework of the AD-AS model, an increase in savings by households will
a. increase the supply of loanable funds and reduce interest rates.
b. be offset by a decrease in savings by businesses.
c. cause long-run fluctuations in the rate of consumption.
d. result in a decline in aggregate demand, output, and employment.
A
Economics
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Personal income less personal taxes is called:
A) personal disposable income. B) national income. C) compensation of employees. D) savings.
Economics
In what three ways do people use their time?
a. market work, selling labor in the labor market, and leisure b. producing their own goods and services, nonmarket work, and market work c. nonwork, work, and leisure d. market work, nonmarket work, and leisure e. market work, nonwork, and leisure
Economics