Other Things Held Constant,an Increase in Saving Implies

question 16

Multiple Choice

Other things held constant,an increase in saving implies

• A)a decrease in consumption spending.
• B)a decline in government spending.
• C)a lower standard of living in the future.
• D)economic growth will soon decrease.

---

Definitions:

Entry Barriers

Factors that prevent or hinder the ability of a new firm to enter and compete in an industry.

Market Structures

The organizational and other characteristics of a market, including the number and size of firms, extent of competition, and type of product differentiation, impacting the behaviour and profitability of businesses within the market.

Quantity Effect

The change in total revenue resulting from a unit change in quantity sold, while holding price constant.

Price Effect

Describes how changes in prices impact the quantity supplied and demanded in a market.