When Consumers Save Their Income Instead of Spending It

question 204

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 investment spending with consumer savings.
• D) there must be less economic growth.
• E) all of the above are true.

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Definitions:

Supply And Demand

A fundamental economic model that explains how the price and quantity of goods and services are determined by the market based on their supply and buyer demand.

Transportation Economies

The cost-saving benefits achieved through efficient management of transportation activities, often through scale or optimized routing.

High-Quality Personnel

Individuals within an organization who are highly skilled, knowledgeable, and capable, contributing significantly to its success.

DC Operations

Activities involved in the day-to-day functioning of a Distribution Center, including goods receipt, storage, packaging, and shipping.