The Relationship in the Above Figure Suggests That When the Interest

question 118

Multiple Choice

The relationship in the above figure suggests that when the interest rate is 5 percent

• A) a decrease in income will be associated with a decrease in expenditures.
• B) a decrease in income will be associated with an increase in expenditures.
• C) an increase in income will be associated with a decrease in expenditures.
• D) there is no relationship between expenditures and income.

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