Other things held constant,an increase in saving implies

Question

Quizplus · Accepted Answer

An increase in saving means that people are keeping more of their money instead of spending it. This results in a decrease in consumption spending, as people are not buying as many goods and services. Therefore, option A is the correct answer as it directly relates to the increase in saving. Options B and D are not necessarily true, as there may not be a decline in government spending or economic growth. Option C is also not true, as an increase in saving can actually lead to a higher standard of living in the future by providing funds for investment and economic growth.

Other Things Held Constant,an Increase in Saving Implies