The Saving Schedule Shown in the Diagram Below Would Shift

question 11

Multiple Choice

The saving schedule shown in the diagram below would shift downward if, all else equal:

• A)the average propensity to save increased at each income level.
• B)the marginal propensity to save rose at each income level.
• C)consumer wealth rose rapidly because of a significant increase in stock market prices.
• D)the real interest rate increased.

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Definitions:

Face-To-Face Interaction

Direct, in-person communication between individuals, allowing for non-verbal cues and immediate feedback.

Solidarity Theory

A concept in social sciences that emphasizes unity and agreement among individuals or groups, supporting each other to achieve common goals.

Relative Deprivation Theory

A sociological theory that posits individuals or groups will feel deprived and likely to seek social change when they compare themselves to others who are better off.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression through industrial codes of fair practice and stimulating jobs creation.