Savings accounts pay very low rates of interest. The average return on the stock market is about 10-12%, in the long run. Why would anyone put money into a savings account?
What will be an ideal response?
The stock market gives a higher return for higher risk. Particularly if you are very averse to risk, you might find the savings account to be an attractive alternative.
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A change in demand means that
a. more will be bought at a lower price. b. a changed amount will be bought at the same given prices. c. less will be purchased at a higher price. d. the quantity demanded changes as the price changes.
Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
Which of the following would cause a firm's cost curve to shift downward?
a. a decrease in resource prices b. an increase in taxes c. an increase in demand for the firm's product d. a reduction in output
"The higher the price of a good or service, the greater the quantity that people are willing to sell" is
A. the law of demand. B. the law of supply. C. neither the law of demand or the law of supply.