A decrease in people's disposable income
A) increases saving and decrease consumption.
B) increases saving.
C) increases investment demand.
D) decreases saving.
E) increases consumption.
D
You might also like to view...
The the government increases the level of government expenditure. If there is no change in the aggregate supply curve, then aggregate demand will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) remain the same; increase; increase C) increase; increase; increase D) decrease; increase; increase E) decrease; remain the same; decrease
Assume that Smith deposits $600 in currency into her checking account in the XYZ Bank. Later that same day Jones negotiates a loan for $1,200 at the same bank. In what direction and by what amount has the supply of money changed?
A. Decreased by $600. B. Increased by $1,800. C. Increased by $600. D. Increased by $1,200.