Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor.
B. Most Americans already own homes and, therefore, have less need for life-cycle saving.
C. Government assistance to the elderly has reduced the need for life-cycling saving.
D. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
Answer: C
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A devaluation of the exchange rate is a policy action that
A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate.
The sum of all income earned by resource suppliers in an economy is smaller than aggregate expenditure because some income is saved
Indicate whether the statement is true or false
What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?
What will be an ideal response?
United States Steel had its antitrust case dismissed on the grounds that it had shown no evidence of unreasonable conduct, despite controlling 60 percent of the steel market.
Answer the following statement true (T) or false (F)