Increased present saving:
A. comes at the expense of reduced current investment.
B. comes at the expense of reduced current consumption.
C. can only occur if the government increases the amount of money in circulation.
D. is only possible if the economy is experiencing positive growth in real GDP.
Answer: B
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When the interest rate falls,
a. the opportunity cost of holding money rises b. people shift out of holding interest-yielding asset holdings into holding money c. the quantity of money people will hold decreases d. investment spending decreases e. real GDP will decrease
Which of the following has contributed to China's economic growth since 1980?
a. the rapid growth of foreign aid from European countries b. nationalization of many private industries c. increased restrictions on international trade d. increased privatization of the agricultural and small-business sectors