O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2021 · Q91 Mark

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

Aan increase in the rate of interest

Ban increase in wealth

Cexpectation that prices will fall in the future

Dinflation rising at a faster rate than wages

✓ Correct answer

B: an increase in wealth

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2021 Paper 1 Variant 2, question 9.

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