The Saving Schedule Shown in the Diagram Below Would Shift

question 65

Multiple Choice

The saving schedule shown in the diagram below would shift downward if,all else equal:

• A) the average propensity to save increased at each income level.
• B) the marginal propensity to save rose at each income level.
• C) consumer wealth rose rapidly because of a significant increase in stock market prices.
• D) the real interest rate increased.

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