Ceteris paribus, when households spend less but do not supply of all their additional saving to the loanable funds market,
a. total spending will exceed below total income, satisfying Say's law.
b. total spending will drop below total income, violating Say's law.
c. total spending will drop below total income, thereby satisfying Say's law.
d. total spending will equal total income, violating Say's law.
e. this will contribute to an economic expansion.
B
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Most nations do not push the rate of economic growth to the maximum because
a. it would be impossible to do so b. they do not know how to do so c. there is an opportunity cost associated with economic growth d. maximum growth would create an inefficient economy e. government budget deficits prevent them from doing so
The difference between what a government spends and what it collects in taxes in a year is
A. the government budget deficit or surplus. B. net revenue. C. the government debt. D. net taxes.