An Upward Shift in the Saving Function

question 70

Multiple Choice

An upward shift in the saving function

• A) will cause GDP to rise.
• B) will have the same effect on GDP as an upward movement along the saving function.
• C) means that, at any given level of income, people want to save less.
• D) will cause GDP to fall by an amount equal to the shift divided by the marginal propensity to save.
• E) means that the marginal propensity to save must have fallen.

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