If Expectations About Future Disposable Income Change, There Is

question 2

Multiple Choice

If expectations about future disposable income change, there is

• A) no change in saving until disposable income actually changes.
• B) a decrease in saving if people expect disposable income to increase in the future.
• C) an increase in saving if people expect disposable income to increase in the future.
• D) a decrease saving if people expect disposable income to decrease in the future.
• E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.

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