3. Other things being constant, what will be the effect of each of the following on consumption andsaving schedules?(a) Concern grows over rising prices.(b) Real interest rates fall.How will the following situations affect the investment demand curve?(a) Unplanned inventories rise to new highs.O A firm decides to increase its current inventory levels.

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Other things being constant, what will be the effect of each of the following on consumption and saving schedules? (a) Concem

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.12P

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

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3. Other things being constant, what will be the effect of each of the following on consumption and
saving schedules?
(a) Concern grows over rising prices.
(b) Real interest rates fall.
How will the following situations affect the investment demand curve?
(a) Unplanned inventories rise to new highs.
O A firm decides to increase its current inventory levels.

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