In the 2000s, low savings rates are attributed to
A) rapid economic growth.
B) stock market boom.
C) declining interest rates and increased refinancing of the mortgages.
D) inefficient monetary policy.
C
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If a producer wants a monopoly with a legal barrier to entry, how can this be done?
i. The producer can spend funds lobbying to attain passage of the legal barrier to entry. ii. The producer can purchase an existing monopoly. iii. The producer can make rent seeking expenditures. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) None of the above are ways to acquire a monopoly with a legal barrier to entry.
Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans. This argument is
a. correct because a higher minimum wage will increase total income which will stimulate aggregate demand and employment. b. incorrect because while some people will receive higher wages, others will experience less employment and fewer training opportunities. c. correct because most minimum wage workers are household heads trying to earn enough to support their family. d. incorrect because the government has too big a deficit to pay for the increase in the minimum wage.
When government increases a fixed tax, consumption schedule
A. shifts downward in a parallel manner. B. shifts upward in a parallel manner. C. becomes horizontal. D. becomes vertical.
When it comes to active policymaking most economists agree that
A. it is likely that active policymaking will have long term effects on the economy. B. active policy making should be used over passive policymaking. C. it is unlikely that active policymaking will have any long term effects on the economy. D. it will lead to long term shocks in the system.