Saving is important for economic growth because
A) a higher saving rate will decrease the standard of living in the future.
B) a higher saving rate increases investment spending.
C) more saving increases consumption immediately.
D) a higher saving rate reduces investment spending.
B
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink
Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases? A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.
The local welfare committee of Wadonia are planning a new swimming pool that will be accessible to the public at no cost. The committee has requested all households in a 10-metre radius of the pool to contribute $50 each to cover the cost of construction. Unfortunately, the committee is having a hard time meeting its funding goal largely because of the free rider problem. One official suggested
that the free rider problem could be minimized by asking all households within a 15-metre radius to contribute to the construction fund. Which of the following is likely to be true? a. The plan will definitely work as the free rider problem will be minimized completely. b. The committee should reject this plan as the funding requirements will never be met. c. The local jurisdiction should impose a rule so that every individual in the locality has to pay for the pool. d. The plan might allow the pool to reach its funding, but the free rider problem will still exist.