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Economics · May / June 2021 · Paper 12 · Question 9

2281Households

What might cause consumers in a high-income economy to both save more and spend more?

  1. Aan increase in the rate of interest
  2. Ban increase in wealth
  3. Cexpectation that prices will fall in the future
  4. Dinflation rising at a faster rate than wages

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Correct answer: B. an increase in wealth

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