All else equal, the level of economic activity would most likely increase if household saving:
A) and business investment spending both increased.
B) and business investment spending both decreased.
C) increased, and business investment spending decreased.
D) decreased, and business investment spending increased.

Question

Quizplus · Accepted Answer

When household saving decreases and business investment spending increases, it typically means that consumers are spending more while businesses are investing more in capital, leading to an increase in economic activity.

All Else Equal, the Level of Economic Activity Would Most