If Say's Law Holds True, Then If Households Save More

question 156

Multiple Choice

If Say's Law holds true, then if households save more of their incomes,

• A) the economy will experience a recession.
• B) firms will increase spending by the same amount.
• C) the government will increase taxes on savings to discourage it.
• D) government spending will increase.

---

Definitions:

PV

The present value, a financial term representing the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Type of Student

A categorization based on various criteria such as academic performance, behavior, engagement level, or background.

Interaction

The manner in which variables in a study or forces in a situation influence each other.

Work Experience

The practical knowledge or skills gained through direct involvement in jobs or tasks over a period of time.