Ceteris Paribus,when Households Spend Less but Do Not Supply of All

question 48

Multiple Choice

Ceteris paribus,when households spend less but do not supply of all their additional saving to the loanable funds market,

• A) total spending will exceed below total income,satisfying Say's law.
• B) total spending will drop below total income,violating Say's law.
• C) total spending will drop below total income,thereby satisfying Say's law.
• D) total spending will equal total income,violating Say's law.
• E) this will contribute to an economic expansion.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Producer Surplus

The disparity between what sellers are prepared to accept for a product or service and the amount they actually get.

Antitrust Laws

Legislation enacted by the government to prevent monopolies and to foster competition in the marketplace.

Illegal

Activities or actions that are forbidden by law or statute, punishable by fines, imprisonment, or other sanctions.