All Else Equal, an Increase in Savings Will Cause Capital

question 154

Multiple Choice

All else equal, an increase in savings will cause capital stock to:

• A) increase.
• B) decrease.
• C) remain unchanged.
• D) increase and then decrease.

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Definitions:

Control

The ability or authority to guide or manage operations, decisions, and policies of a business or project.

Income

Earnings received by an individual or entity, including wages, salaries, investments, and other forms of compensation, which are subject to tax.

Schedule B

A section of IRS tax forms for reporting interest and dividend income.

Interest Income

Income earned from various forms of investments that pay interest, such as savings accounts, CDs, and government bonds, subject to income tax.