In the saving-investment diagram,an increase in current output would
A)shift the saving curve to the left.
B)shift the investment demand curve to the left.
C)not shift the curves.
D)shift the saving curve to the right.

Question

Quizplus · Accepted Answer

An increase in current output typically leads to an increase in income, which, assuming the propensity to save remains constant, results in an increase in savings. This is represented by a rightward shift of the saving curve in the saving-investment diagram.

In the Saving-Investment Diagram,an Increase in Current Output Would