Increases in ________ typically lead to decreases in ________.
A)the interest rate;saving
B)disposable income;consumption
C)autonomous consumption;consumption
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Increases in the interest rate often encourage saving rather than decreasing it, as higher interest rates provide a greater return on savings. Increases in disposable income typically lead to increases in consumption, not decreases, because people have more money to spend. Autonomous consumption is the consumption that occurs even when income is zero, and increases in it would logically lead to an increase in overall consumption, not a decrease. Therefore, none of the provided options correctly describe a situation where an increase in one variable leads to a decrease in another.

Increases in ________ Typically Lead to Decreases in ________

Increases in Typically Lead to Decreases in