If Consumers Decide to Save a Larger Percentage of Their

question 89

Multiple Choice

If consumers decide to save a larger percentage of their income,it will be:

• A) harmful in the long run because the price level will rise.
• B) beneficial in the short run because saving will rise.
• C) beneficial in the long run because interest rates will fall.
• D) harmful in the long run because aggregate supply will fall.
• E) harmful in the long run because unemployment will increase.

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