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What Happens to the Fraction of Disposable Income Saved in an Economy

Question 77

Multiple Choice

What happens to the fraction of disposable income saved in an economy as the economy changes?


A) The fraction of disposable income saved increases as the economy grows.
B) The fraction of disposable income saved increases as the economy shrinks.
C) The fraction of disposable income saved decreases as the economy grows.
D) The fraction of disposable income saved decreases as the economy shrinks.
E) The fraction of disposable income saved is unchanged as the economy grows.

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