An explanation for the low saving rate in the United States consistent with the precautionary reason for saving includes:
A. highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
B. relatively generous government assistance for the elderly and large down payments required for home purchases.
C. confidence in future economic prosperity.
D. households spending beyond their means to keep up with community standards.
Answer: C
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With eminent domain, landowners ________ in the gains that result from the taking of their property, and with private bargaining, landowners ________ in the gains that result from the taking of their property
A) share; share B) share; do not share C) do not share; share D) do not share; do not share
A goal of very high employment may lead to ________
A) inflationary monetary policy B) inflationary fiscal policy C) demand-pull inflation D) all of the above E) none of the above
There are different kinds of income discussed in the book. Which one of the following does not belong
a. Discretionary b. Disposable c. Gross d. Aspirational
The basic difference between macroeconomics and microeconomics is that:
a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.