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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Definitions:

P-value

A statistical measure that helps to determine the significance of results, indicating the probability that observed data occurred under the null hypothesis.

Filling Machine

A device used in manufacturing industries to fill products, such as liquids, powders, or gases, into containers or packaging.

Juice Drink

A beverage made from the extraction or pressing of the natural liquid contained in fruit and vegetables.

Adjustment

The process of modifying data or variables to remove errors, biases, or to account for known anomalies.