Related to the Economics in Practice on P

question 143

Multiple Choice

Related to the Economics in Practice on p. 476: According to the "paradox of thrift," as individuals decrease their saving

• A) income in the economy decreases because there is less money available for firms to invest.
• B) income in the economy decreases because interest rates will rise and the economy will contract.
• C) income in the economy will remain constant because the change in consumption equals the change in saving.
• D) income in the economy will rise because the increased consumption that results from decreased saving causes the economy to expand.

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Definitions:

Deltoid

A large, triangular-shaped muscle covering the shoulder joint, responsible for arm abduction.

Triceps Brachii

A muscle located at the back of the upper arm, responsible for extension of the elbow joint.

Cauda Equina

A bundle of spinal nerves and spinal nerve rootlets located at the lower end of the spinal cord, resembling a horse's tail.

Conus Medullaris

The tapered end of the spinal cord, located around the first lumbar vertebra, where spinal nerves converge.