Related to the Economics in Practice on p. 156: According to the "paradox of thrift," as individuals increase their saving, Select one: income in the economy will remain constant because the change in consumption equals the change in saving. O a. O b. income in the economy increases because interest rates will fall and the economy will expand. O c. income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract. O d. income in the economy increases because there is more money available for firms to invest.

Related to the Economics in Practice on p. 156: According to the "paradox of thrift," as individuals increase their saving, Select one: income in the economy will remain constant because the change in consumption equals the change in saving. O a. O b. income in the economy increases because interest rates will fall and the economy will expand. O c. income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract. O d. income in the economy increases because there is more money available for firms to invest.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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elearn.squ.edu.om/mod/quiz, G SYSTEM (ACADEMIC) es of Macroeconomics|| Spring21 Related to the Economics in Practice on p. 156: According to the "paradox of thrift," as individuals increase their saving, Select one: O a. income in the economy will remain constant because the change in consumption equals the change in saving. O b. income in the economy increases because interest rates will fall and the economy will expand. c. income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract. O d. income in the economy increases because there is more money available for firms to invest. NEXT PAGE
Which of the following doesn't have increasing function? O a. Saving function O b. Consumption function O c. Expenditure function O d. None of these
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K In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of O A. the economy entering a recession. B. the economy entering an expansion. O C. a decrease in interest rates during an economic recession. O D. a government budget surplus. O E. a increase in interest rates during an economic expansion. Real interest rate (percent per year) 10 8 6 4 2 0 DLF₁ DLF₂ DLF3 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)