Savings must be invested in order to bridge the gap between: a. a drop in both income and consumption b. a rise in both income and consumption c. to check the ratio of investment in income
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- Find the level of savings when consumption is $610 and the income is $111Which one of the following is NOT a possible relationship between income and spending Select one: a. Income equals the level of spending b. Spending is higher than income c. None is a relationship d. Income is higher than spendingWhich of the following isn't one of the eight determinates of the level of consumption? A. Disposable Income B. Keeping up with the Joneses C. The Wealth Effect D. Product Quality
- If the budget line rotates from blue to red. Consumption Next Year C B Consumption Today O The interest rate has increased. O The interest rate has decreased. O The interest rate has not changed. O If the person borrowed a $1 today they would owe more in the future. O If the person borrowed a $1 today they would owe less in the future. O If the person saved a $1 today they would have more money in the future on the red budget line compared to the blue budget line. O If the person saved a $1 today they would have less money in the future on the red budget line compared to the blue budget line.Ratio of change in savings due to the change in income is known as _______Create a speech about the relationship of income, saving and consumption to price changes in shopping.
- What is it mean by full price and income when discussing household consumption?Which of the following two effects of a decrease in the tax rate on saving would raise savings? a. the income effect and the substitution effect b. the income effect but not the substitution effect c. the substitution effect but not the income effect d. neither the substitution effect nor the income effectThe figure below depicts a typical individual's income and consumption paths over his or her lifetime. Use the list on the right to label the diagram. Income, Early pa Late e Income path B Borrowing region c) Consumption path D) Dissaving region Saving region