Which of the Following Explains Why the Supply of Savings

question 197

Multiple Choice

Which of the following explains why the supply of savings is upward sloping?

• A) An increase in the interest rate leads to an increase in the quantity of saving.
• B) An increase in the interest rate leads to an increase in the opportunity cost of saving.
• C) An increase in investment leads to an increase in the level of saving.
• D) An increase in time preference leads to an increase in the quantity of saving.

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Definitions:

Conscience

An individual's internal moral compass, guiding distinctions between right and wrong.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior, often influenced by culture, religion, or personal beliefs.

Superego

In psychoanalytic theory, it represents the ethical component of the personality and provides the moral standards by which the ego operates.

Psychodynamic Perspectives

An approach in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.