Which of the Following Would Cause the National Saving Rate

question 27

Multiple Choice

Which of the following would cause the national saving rate to decline for any given interest rate?

• A)A decline in consumer confidence
• B)A decline in the government share of GDP
• C)A decline in the investment tax credit
• D)An increase in the level of wealth
• E)An increase in the net export share of GDP

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Definitions:

Market Size

The total volume or value of all sales within a given market over a specific period of time.

Consumer Surplus

The gap between the total price consumers are willing to pay for a good or service and the price they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount they receive (market price).

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.