5 Questions
What primarily determines consumption and saving?
Disposable Income
What is the relationship between disposable income and consumption?
Direct relationship (positive)
What can occur when disposable income is less than consumption?
Dissaving
What is the relationship between interest rates and investment?
Interest-Rate–Investment Relationship
What is the impact of shifts in the investment demand curve?
Changes in investment levels
Test your understanding of basic macroeconomic relationships with this quiz. Explore concepts such as income-consumption and income-saving relationships, nonincome determinants of consumption and saving, and the impact of interest rates on investment.
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