An Increase in Saving

question 96

Multiple Choice

An increase in saving

• A) decreases the amount of resources available for investment.
• B) increases the amount of resources that can be devoted to the purchase of capital goods.
• C) reduces real GDP by decreasing consumption.
• D) increases a country's present standard of living.

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Definitions:

US

Abbreviation for the United States, a country in North America.

Conditioned Response

The automatic response established by training to an ordinarily neutral stimulus.

Gun-Shy Dog

A term used to describe a dog that is afraid of loud noises, such as gunfire or fireworks, often due to lack of exposure or negative experiences.

Balloon Bursts

The sudden rupture of a balloon due to pressure, often used metaphorically to indicate a sudden failure or end.