Within the Framework of the AD-AS Model, an Increase in Savings

question 85

Multiple Choice

Within the framework of the AD-AS model, an increase in savings by households will

• A) increase the supply of loanable funds and reduce interest rates.
• B) be offset by a decrease in savings by businesses.
• C) cause long-run fluctuations in the rate of consumption.
• D) result in a decline in aggregate demand, output, and employment.

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Definitions:

Follower Attitudes

The perceptions, feelings, and opinions that followers have towards their leaders and the impact these have on organizational outcomes.

Perceptions

The way in which something is regarded, understood, or interpreted by individuals.

Leader

An individual who influences and guides the direction, actions, and attitudes of a group towards achieving a set goal.

Leader Effectiveness

The degree to which a leader is successful in achieving desired outcomes through guiding and influencing others.