If expectations about future income change, there is
A) a decrease saving if people expect income to decrease in the future.
B) a decrease in saving if people expect income to increase in the future.
C) an increase in saving if people expect income to increase in the future.
D) no change in saving until income actually changes.
E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
B
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Suppose a graph with Ron's weight on the vertical axis and his consumption of ice cream on the horizontal axis indicated that for each serving of ice cream he ate, Ron would gain 3 pounds, regardless of how much ice cream he had already eaten. This graph would show a
a. horizontal line at weight = 3 b. straight line with slope = 3 c. straight line with slope = 1/2 d. straight line with slope = -3 e. straight line with slope = -1/3
During the 2007-2009 recession, the consumers in the U.S. economy:
a. consumed less and saved more resulting in a decline in aggregate demand. b. saved less and consumed more resulting in a decline in aggregate demand. c. consumed and saved more resulting in an increase in aggregate demand. d. consumed and saved less resulting in an increase in aggregate demand.