The impact of declining stock prices in the U.S. during the period 2000-2002 on U.S. household wealth was at least partially offset by:
A. an increase in the saving rate.
B. an increase in public saving.
C. a decrease in the saving rate.
D. increasing housing prices
Answer: D
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All of the following are examples of positive statements EXCEPT:
A. Historically higher rates of money growth are associated with higher rates of inflation. B. Higher interest rates are achieved by slowing the growth of the money supply. C. Higher interest rates reduce construction activity. D. Economic output should not be allowed to increase too fast.
Use the following table to answer the next question.YearAltaZornAltaZorn?(Real GDP)(Real GDP)(Population)(Population)1$2,000$150,00020050022,100152,00020250532,200154,000210508Between years 2 and 3
A. Alta's real GDP grew more rapidly than Zorn's real GDP. B. real GDP fell in Zorn. C. population fell in Alta. D. population growth reduced Alta's real GDP growth to zero.
In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, at point 1
A) there is an excess demand for money. B) there is an excess supply of money. C) the demand for output exceeds Y1. D) the demand for output is below Y1.
Payments to households not in exchange for goods and services currently produced are:
a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures.