Which of the following statements is true?
A) Savings of households are independent of tax rates.
B) Higher interest rates typically encourage more savings.
C) An increase in the consumption of households increases savings of the households.
D) Households that expect an increase in future earnings are likely to save more.
B
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The largest proportion of M1 is made up of
A) currency. B) checking account deposits. C) traveler's checks. D) savings account deposits.
Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for walnuts. An advance in production technology which makes harvesting walnuts less time consuming would be represented by a shift from
A) Demand 1 to Demand 2. B) Demand 2 to Demand 1. C) Supply 1 to Supply 2. D) Supply 2 to Supply 1.
According to the textbook, why didn't the U.S. government mount chronic budget deficits before 1970?
A) Elected officials didn't know how to use the federal budget as a policy tool. B) Deficits were viewed as an irresponsible moral failure on the part of government. C) The U.S. had a constitutional balanced budget amendment. D) For all of the above reasons. E) For none of the above reasons.
To escape adverse selection and elicit high quality experience goods buyers can
a. offer price premiums to new firms in the market b. seek out unbranded goods c. buy from generic storefronts that have leased temporary space d. secure warranties from warehouse retailers e. none of the above