An explanation for the low saving rate in the United States consistent with the life-cycle reason for saving includes:
A. large and persistent capital gains.
B. households spending beyond their means to keep up with community standards.
C. relatively generous government assistance for the elderly and large down payments required for home purchases.
D. highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
Answer: D
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The United States produced approximately ________ worth of goods and services in 2011
A) $15 trillion B) $15 billion C) $150 trillion D) $150 billion E) $1,500 trillion
At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can
A) increase aggregate demand and lead to an expansion. B) increase aggregate supply and lead to an expansion. C) decrease aggregate demand and lead to a stagflation. D) decrease aggregate supply and lead to a stagflation. E) decrease aggregate demand and lead to a higher price level.