Suppose real disposable income increases by $1,000. Given this information, we know that

A) consumption will generally increase by more than $1,000.
B) saving will generally increase by exactly $1,000.
C) consumption will generally increase by exactly $1,000.
D) consumption will generally increase by less than $1,000.

D

Economics

You might also like to view...

The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base

A) smaller; larger; decrease B) larger; larger; decrease C) larger; smaller; decrease D) smaller; larger; increase E) larger; larger; increase

Economics

If the government wants to regulate a natural monopoly, it will force the firm to set price equal to

A) average cost. B) marginal cost. C) marginal revenue. D) None of the above.

Economics