If Disposable Income Increases, People ________ Saving and the Real

question 39

Multiple Choice

If disposable income increases, people ________ saving and the real interest rate will ________.

• A)increase; rise
• B)decrease; rise
• C)increase; fall
• D)decrease; fall
• E)increase; rise or fall depending on the shift of the demand curve for loanable funds

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Definitions:

President Carter

The 39th president of the United States, serving from 1977 to 1981, known for his efforts in advancing peace and human rights.

Jimmy Carter

The 39th President of the United States, serving from 1977 to 1981, known for his efforts in peace negotiations and energy conservation.

Conservatives

Political ideology favoring the preservation of traditional social institutions and values, with a tendency to resist change that challenges established norms.

Federal Government

The national government of a federal country, such as the United States, which has specific powers delegated to it by a constitution, distinguishing it from state or local governments.