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.

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Definitions:

Communication Process

The sequence of steps through which information is conveyed from a sender to a receiver, involving encoding, transmitting, receiving, and decoding messages.

Message

A piece of information or communication conveyed from one person, group, or system to another through various means.

Communication Process Model

A conceptual framework that describes the sequence of steps involved in the successful transmission and reception of a message between communicators.

Noise

in communication refers to any interference that distorts or interrupts the clarity of the message being transmitted between sender and receiver.