If consumer confidence rises because of strong job growth in an economy, what is likely to happen to the rate of savings?
a) The savings rate will likely rise.
b) The savings rate will likely fall.
c) The savings rate will likely fall to zero.
d) The savings rate will turn negative.
Ans: b) The savings rate will likely fall.
Economics
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If a bank holds 100 percent of its deposits as reserves, then: a. it cannot make a loan
b. it cannot accept a deposit. c. it cannot allow a withdrawal. d. it cannot be taxed by the government.
Economics
Temporary supply shocks:
A. are significant events that directly affect production. B. shift the aggregate-supply curve in the short run. C. would affect the short-run equilibrium. D. All of these are true.
Economics