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Questions and Answers
What primarily determines consumption and saving?
What primarily determines consumption and saving?
- Investment Demand
- Government Spending
- Interest Rates
- Disposable Income (correct)
What is the relationship between disposable income and consumption?
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?
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?
What is the relationship between interest rates and investment?
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What is the impact of shifts in the investment demand curve?
What is the impact of shifts in the investment demand curve?
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