l A combination of a decrease in income tax C a new technological improvement with an increase in government expenditure D a decrease in tax percentage will . A increase aggregate demand 5 Keynes believed that savings depend on B decrease aggregate demand A interest rate because at low interest rates, C leave aggregate demand unchanged people Will spend more. D have an ambiguous effect on aggregate B interest rate because if interest rate is low, demand people will save more for their retirement- C the size of the people's income because 2 The most important determinant of at higher income levels, people can save consumption is . more. A future income D the total consumption. B disposable income C household wealth 6 An upwards shift of the consumption D dividend function will A increase the equilibrium national income. 3 The average propensity to save is calculated B increase the demand for transaction by dividing . balances- A saving by income C be the result of decisions by people to B total income by saving spend more at each level of national C change in saving income by change in income. consumption D decrease the proportion of saving. D change in income by change in saving 7" In Islam, the owner of liquid capital uses this 4 An investment may decrease due to . capital for investment through the mode of A an increase in interest rate . B an increasein business condence A AI-Mudhambah