Which of the Following Explains Why the Supply of Savings

question 197

Multiple Choice

Which of the following explains why the supply of savings is upward sloping?

• A) An increase in the interest rate leads to an increase in the quantity of saving.
• B) An increase in the interest rate leads to an increase in the opportunity cost of saving.
• C) An increase in investment leads to an increase in the level of saving.
• D) An increase in time preference leads to an increase in the quantity of saving.

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Definitions:

Types Of Innovation

The categorization of new developments or improvements in products, processes, marketing, or organizational methods, including incremental, radical, disruptive, and architectural innovation.

Creative Destruction

A concept in economics which suggests that economic innovation and progress often involves the dismantling of old structures and the emergence of new ones.

New Products

Refers to items or services that have been introduced to a market for the first time, offering innovation or advancement.

Existing Products

Goods or services that are currently available to consumers.