Which one of the following will cause a movement up along an economy's saving schedule?
A) An increase in household borrowing.
B) An increase in disposable income.
C) An increase in stock prices.
D) An increase in interest rates.

Question

Quizplus · Accepted Answer

An increase in disposable income means that households have more money to save after spending on necessities, which will cause a movement up along the economy's saving schedule. Option A is incorrect because an increase in household borrowing would likely decrease savings. Option C is incorrect because an increase in stock prices does not directly affect the saving schedule. Option D is incorrect because an increase in interest rates would likely increase the incentive to save, but it would cause a movement down and not up along the saving schedule.

Which One of the Following Will Cause a Movement Up