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:

Life Cycle Principle

The life cycle principle is a concept in ecology and economics that assesses the stages of a product or organism's life from creation to disposal, emphasizing sustainability and environmental impact.

Egalitarian

Relating to the belief in the equality of all people, especially in political, economic, or social life.

Utilitarian

Pertains to the ethical theory that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Macroallocation

Refers to the broad, system-wide distribution of healthcare resources and services, focusing on how resources are allocated across different regions, populations, or types of care.