When Consumers Save Their Income Instead of Spending It

question 76

Multiple Choice

When consumers save their income instead of spending it,

• A) Say's Law cannot be true.
• B) there must be a mismatch between short-run aggregate supply and aggregate demand.
• C) the interest rate in the loanable funds market can match business savings with consumer savings.
• D) the loanable funds market can rescue Say's Law.
• E) there must be less economic growth.

---

Definitions:

Partial Thickness Burns

Burns that affect the epidermis and part of the dermis layer of skin, causing blistering and more severe pain.

Second-Degree Burns

Burns that affect both the epidermis and dermis layers of the skin, causing pain, swelling, blistering, and redness.

First-Degree Burns

Burns that affect only the outer layer of skin, causing redness and pain but typically no blisters or permanent damage.

Erythema

Erythema is a redness of the skin or mucous membranes caused by hyperemia (increased blood flow) in superficial capillaries.