Suppose the Economy's Saving Schedule Shifts from S₁ to S

question 53

Multiple Choice

Suppose the economy's saving schedule shifts from S₁ to S ₂ as shown in the below diagram. We can say that its:

• A) MPC has increased.
• B) MPS has increased.
• C) APS has increased at all levels of disposable income.
• D) APS has decreased at all levels of disposable income.

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Definitions:

Verbal Contract

An agreement between parties made through spoken words rather than in written form, still legally binding but harder to prove.

Breach

The violation or non-fulfillment of a legal agreement, duty, or contract.

Discharging

The process of fulfilling or settling a debt, obligation, or legal liability, effectively freeing one from the responsibility.

Judgment

A decision of the court.