A Higher Rate of Return on Saving Has

question 38

Multiple Choice

A higher rate of return on saving has

• A)an income effect that discourages saving and a substitution effect that encourages saving.
• B)an income effect that encourages saving and a substitution effect that discourages saving.
• C)income and substitution effects that both decrease saving.
• D)income and substitution effects that both increase saving.

---

Definitions:

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Child-Rearing Style

Describes the strategies, techniques, and approaches parents use to raise their children, including aspects like discipline, communication, nurturing, and expectations.

Cultural Norms

Norms whose origin is part of the tradition of a culture.

Papua New Guinea

Papua New Guinea is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands, known for its diverse cultures and languages.