Macroeconomic Relationships Quiz
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Questions and Answers

What primarily determines consumption and saving?

  • Investment Demand
  • Government Spending
  • Interest Rates
  • Disposable Income (correct)

    • What is the relationship between disposable income and consumption?

  • Inverse relationship (negative)
  • Random relationship
  • Direct relationship (positive) (correct)
  • No relationship

    • What can occur when disposable income is less than consumption?

  • Dissaving (correct)
  • No change
  • Investment
  • Increased saving

    • What is the relationship between interest rates and investment?

    <p>Interest-Rate–Investment Relationship</p> Signup and view all the answers

    What is the impact of shifts in the investment demand curve?

    <p>Changes in investment levels</p> Signup and view all the answers

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