List four reasons why people save
What will be an ideal response?
a. First, and foremost, people save for consumption after retirement.
b. People save to cope with possible emergencies or shortages of funds in the future.
c. People save to buy durable goods.
d. People save so that they can invest in a personal business.
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In the table above, if a unit of capital is $50 per day and an hour of labor is $15 per day, which method is economically efficient?
A) A B) B C) C D) D
From the mid 1980s to the present, the United States
a. had only a small current account deficit. b. had a large capital account deficit, which in the balance of payments accounts was financed with a surplus in the current account, which in turn financed investment in excess of domestic saving. c. has had a large current account deficit, which in the balance of payments accounts was financed with a surplus in the capital account, that in turn financed investment in excess of domestic saving. d. None of the above