For a Given Level of National Income, an Increase in Private

question 32

Multiple Choice

For a given level of national income, an increase in private consumption or government purchases will cause national saving to

• A)decrease.
• B)exceed investment.
• C)grow at a constant rate.
• D)increase.
• E)remain unchanged from its initial level.

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Definitions:

Monthly Payments

Monthly payments refer to amounts paid every month over a set period of time to repay a debt or subscription, often used in loans or service agreements.

Compounded Quarterly

The process of calculating interest on both the initial principal and accrued interest from previous periods on a quarterly basis.

Present Value

The present value of a future amount of money or series of cash inflows, based on a certain rate of return.

Quarterly Payments

Payments that are made four times a year, typically related to dividends, loans, or lease agreements.