If Consumers Decide to Save a Larger Percentage of Their

question 28

Multiple Choice

If consumers decide to save a larger percentage of their incomes,it will be

• A) harmful in the long run because the price level will rise.
• B) beneficial in the short run because saving will rise.
• C) beneficial in the long run because interest rates will fall.
• D) harmful in the long run because aggregate supply will fall.
• E) harmful in the long run because unemployment will increase.

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Definitions:

Injured Child

Refers to a minor who has suffered harm or damage, either physically or psychologically, as a result of an accident or other incident.

Constructively Discharged

A situation where an employee's working conditions are made so intolerable that the employee feels compelled to resign.

Forklift

A powered industrial vehicle used to lift and move materials over short distances.

Heavy Loads

Substantial physical or metaphorical burdens that are difficult to carry or manage.