A. an increase in income and an increase in overall saving
B. a decrease in income and an overall decrease in saving
C. a decrease in income but an increase in saving
D. an increase in income but no overall change in saving
Related Mcqs:
- According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase , aggregate demand will decrease
B. aggregate supply will increase, aggregate output will increase and the price level will decrease
C. aggregate supply will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase and the price level will increase - According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?
A. appreciate because of an increase supply of peso denominated assets
B. depreciate because of an increased supply of peso denominated assets
C. appreciated because of an increased demand for peso denominated assets
D. depreciated because of an increased demand for peso denominated assets - According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase will increase and the price level will increase - Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
A. the brain drains from LDCs to DCs
B. the price role of political and credit-market risk in many LDCs
C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D. the fat that the DC capital market is perfectly competitive - Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
A. average costs to remain constant
B. average costs to decrease
C. average costs to increase
D. marginal costs to increase - New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause ?
A. the demand curve for accountants to shift to the right, since the productivity of accountants has increased
B. firms to move up their demand curves for accountants
C. the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.
D. firms to move down their demand curves for accountants - Keynes suggested that decisions to consume and save were based on ?
A. previous decisions
B. absolute income
C. relative income
D. permanent income - In Which of the business cycle do firms try to cut stocks in order to save costs ?
A. The upturn
B. The peeking out
C. The expansion
D. The recession - The marginal propensity to save (MPS) is ?
A. the average amount of income that is saved
B. the fraction of a change in income that is saved
C. the ratio of saving to income
D. the ratio of income to saving - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
A. supply side economists
B. neo-Keynesian economists
C. rational -expectations economists
D. New classical economists
