Which of the following is not a proposition to the psychological law of consumption? Increase in income does not lead to less savings than before. Increase in income leads to less savings than before. Increase in income is divided into a certain ratio of saving and spending. As the income increases, spending also increases but less than the increase in income.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 10P
icon
Related questions
Question
Solve please
Which of the following is not a proposition to the psychological law of consumption?
Increase in income does not lead to less savings than before.
Increase in income leads to less savings than before.
Increase in income is divided into a certain ratio of saving and spending.
As the income increases, spending also increases but less than the increase in income.
Transcribed Image Text:Which of the following is not a proposition to the psychological law of consumption? Increase in income does not lead to less savings than before. Increase in income leads to less savings than before. Increase in income is divided into a certain ratio of saving and spending. As the income increases, spending also increases but less than the increase in income.
Which among the following will represent the current exchange of one currency for another?
Exchange Transaction.
Forward Transaction.
Spot Transaction.
Daily Transaction.
Transcribed Image Text:Which among the following will represent the current exchange of one currency for another? Exchange Transaction. Forward Transaction. Spot Transaction. Daily Transaction.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cash Flow
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,