Suppose Households Become More Future-Oriented and Decide to Save More

question 139

Multiple Choice

Suppose households become more future-oriented and decide to save more at each income level. All other things unchanged, this will

• A) shift the aggregate demand curve to the right.
• B) shift the aggregate demand curve to the left.
• C) not affect aggregate but rather aggregate supply because firms will now produce less.
• D) shift both the aggregate demand curve and the aggregate supply curve to the left.

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Definitions:

Animal Rights

The conviction that animals deserve to have ownership of their lives and should be given equal consideration to human beings’ comparable interests.

Guinea Pigs

Small rodents that are often used as pets and are known for their docile nature and vocalizations.

Nomothetic

An approach in social science that seeks to find general laws that can explain human behavior through the study of large groups.

Idiographic

An approach in research and psychology that focuses on the individual, considering unique characteristics and personal experiences.