When consumers save their income instead of spending it,
A) Say's Law cannot be true.
B) there must be a mismatch between short-run aggregate supply and aggregate demand.
C) the interest rate in the loanable funds market can match business savings with consumer savings.
D) the loanable funds market can rescue Say's Law.
E) there must be less economic growth.

Question

Quizplus · Accepted Answer

The Answer of When consumers save their income instead of spending it,
A) Say's Law cannot be true.
B) there must be a mismatch between short-run aggregate supply and aggregate demand.
C) the interest rate in the loanable funds market can match business savings with consumer savings.
D) the loanable funds market can rescue Say's Law.
E) there must be less economic growth.

When Consumers Save Their Income Instead of Spending It