Answer:
As long as you remain within the casino's walls, chips fit the definition of currency; that is, they serve as a means of exchange, an account unit, and a value store. Once you leave the casino, chips don't work very well as money but many kinds of money don't work well in other places.
It's hard, for example, to spend money from Turkey or Brazil on your local supermarket or the movie theatre.
When interest rates are high, then the consumers have a greater incentive to save more, but when interest rates are low, consumer have a greater incentive to borrow more.
<h3>What is Interest Rate? </h3>
This refers to the charge which is given for a particular loan which is replayed after a certain time.
With this in mind, high interest rates are not appealing to customers so they rather save and then borrow when the interest rates are low.
Read more about interest rates here:
Answer:
The correct answer is: 2,000; 0.4
Explanation:
We can write the initial consumption function as,
C = a + bY
8,000 = a + 10,000b
a = 8,000 - 10,000b
The new consumption function is,
14,000 = a + 20,000b
Putting value of a in this function
14,000 = 8,000 - 10,000b + 20,000b
14,000 - 8,000 = 10,000b
b = 
b = 0.6
Putting the value of b in the initial function,
8,000 = a + 10,000 
0.6
a = 8,000 - 6,000
a = $2,000
The marginal propensity to consume or b is 0.6.
The marginal propensity to save will be
= 1 - 0.6
= 0.4
