According to classical economists, if the amount of funds households save is greater than the amount of funds firms invest, then
A) the interest rate will fall, ultimately moving to a level where the amount of funds households plan to save equals the amount of funds firms plan to invest.
B) the interest rate will rise, ultimately moving to a level where the amount of funds households plan to save equals the amount of funds firms plan to invest.
C) the interest rate will remain constant and people will simply buy more goods.
D) more money will he used for leisure purposes, since households save in order to consume leisure at some later time.
E) none of the above
A
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A) An economy that is characterized by barter trade of goods and services B) An economy where strong controls are imposed by the ruling authority C) An economy in which resources are allocated through the price mechanism. D) An economy in which there are a few privately owned firms
An unexpected exogenous event which has a significant impact on an important sector of the economy or on the economy as a whole is called a(n)
A) macroeconomic shock. B) countercyclical fluctuation. C) downward economic spiral. D) autonomous destabilizer.
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A) the General Agreement on Tariffs and Trade. B) the World Trade Organization. C) the World Agreement on Tariffs and Trade. D) the Trade and Tariff Agreement.
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a. Don't overestimate your importance in the customer's life. b. Measure lifetime customer value c. Recognize the right relationships and adapt d. Be transparent