Which one of the following will cause a movement up along an economy's saving schedule?
A) an increase in household borrowing
B) an increase in disposable income
C) an increase in stock prices
D) an increase in interest rates

Question

Quizplus · Accepted Answer

An increase in disposable income will cause a movement up along an economy's saving schedule because individuals will have more income available to save, increasing the amount of savings at each level of income. A decrease in disposable income would cause a movement down along the saving schedule. The other options, such as an increase in household borrowing (A), an increase in stock prices (C), or an increase in interest rates (D) would not directly cause a movement up along the saving schedule.

Which One of the Following Will Cause a Movement Up