Suppose the Economy's Saving Schedule Shifts from S1 to S2

question 206

Multiple Choice

Suppose the economy's saving schedule shifts from S1 to S2, as shown in the given diagram. We can say that its

• A) MPC has increased.
• B) MPS has increased.
• C) APS has increased at all levels of disposable income.
• D) APS has decreased at all levels of disposable income.

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Definitions:

Trend Income Statement

An income statement that shows several years of financial data in a horizontal format, making it easier to identify trends and patterns.

Sales

The total amount of goods or services sold by a company during a specific period.

Trend Balance Sheet

A financial statement that shows how the assets, liabilities, and equities of a company have changed over a period of time.

Balance Sheet Item

An individual entry, such as assets, liabilities, or equity, that appears on the balance sheet, detailing a company's financial position at a specific point in time.