If Consumption Is Greater Than Disposable Income,it Follows That

question 71

Multiple Choice

If consumption is greater than disposable income,it follows that

• A) interest rates are rising.
• B) the budget deficit is shrinking.
• C) saving is negative.
• D) the multiplier is inoperative.
• E) none of the above

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Definitions:

EMH

The Efficient Market Hypothesis, suggesting that stock prices fully reflect all available information and are efficiently priced.

Technical Analysis

A methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.

Security Prices

The market price at which a security is traded, reflecting the supply and demand dynamics for that particular security.

Supply And Demand

A fundamental economic concept that describes the relationship between the availability of goods and services and the desire for them by consumers, impacting their prices.