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storchak [24]
3 years ago
6

A relatively low saving rate affects productivity growth by: a. decreasing consumption spending and increasing investment in hum

an capital. b. reducing the tax base and preventing the government from providing public goods. c. causing a shortage of funds for investment in physical capital. d. stimulating imports and increasing the trade deficit.
Business
2 answers:
umka2103 [35]3 years ago
5 0

Answer:

C) causing a shortage of funds for investment in physical capital.

Explanation:

In economics, savings equals investment. Higher investments result in higher productivity, that is why the savings rate of a country is the single most important factor in determining future economic growth.

Low savings rate means that current consumption is very large, and that benefits economic growth on the short run (very short run, like 1 or 2 years), but future economic growth will suffer from it.

Imagine your house as the total economy of a nation. You earn $1,000 per month and must decide how much to spend right now and how much to save for future spending. If you spend the $1,000 right now, you will purchase several things and enjoy them immediately. But what happens in one or two weeks. Since you do not have any more money left, you cannot purchase anything else, which reduces your future joy.

Investment increases future wealth and fosters economic prosperity.

antoniya [11.8K]3 years ago
5 0

Answer:

C. Causing a shortage of if funds and for investment in physical capital

Explanation:

Savings literally means income not spent or deferred consumption. It involves reducing expenditures on goods and services.

Investment is the allocation of resources in expectation of a benefit in the future. It is the acquiring of assets to yield return.

In economics, savings(S) equals investment(I), that is,

S=I. Savings translate to invest.

This can be concluded that low savings translate to low investment while high savings translate to high investment.

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Please Help soon
Dafna11 [192]

The money multiplier can be used as an expansionary and also an expansionary tool by a given government.

<h3>What is an expansionary tool?</h3>

As an expansionary tool, the money multiplier may be used to increase the amount of money supply that is in an economy. This would cause the interest rates to be low so that people would not have much benefits from saving their money.

<h3>As a contractionary tool</h3>

The money multiplier can be used to reduce the amount of money that is in circulation in a given economy. This would make people want to save more money in the bank because the interest rate is going to be raised.

Read more on the money multiplier here: brainly.com/question/13923879

#SPJ1

5 0
2 years ago
Refer to Exhibit 31-4. If a negative externality exists, then curve __________ represents the marginal social cost curve and the
IrinaK [193]

Answer:

Demand

Consumer interference

Explanation:

The social demand curve represents the benefit of demand to the whole society whereas the normal demand curve represents the benefits to the consumers only. The demand curve represents the social cost curve and the market failure is analyzed by the customer interference.

7 0
3 years ago
Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3
Anika [276]

Answer:

60 pizzas

40 pizzas

Explanation:

Marginal product measures the change in output as a result of a change in input by one unit

Marginal product = change in output / change in input

Marginal product for the 4th worker

Change in output = 360 - 300 = 60 pizzas

Change in input = 4 - 3 = 1 worker

Marginal product = 60 / 1 = 60

Marginal product for the 5th worker

Change in output = 400 - 360 = 40 pizzas

Change in input = 5 - 4 = 1

Marginal product = 40 / 1 = 40

It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

The law of diminishing returns says as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.

6 0
2 years ago
For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The
scoundrel [369]

Answer:

<u>Equipment:</u>

                                                  Dr.       Cr.

Depreciation Expense          $5,520

Accumulated Depreciation                $5,520

<u>Land:</u>

Land never depreciates, so there is no adjusting entry for the Land purchased on year end.

Explanation:

Year end is not given in the data so, it is assumed the December 31 is the end of the year

Equipment

Depreciation  for the year = ( Purchase price - Residual value ) / useful life

Depreciation  for the year = ( $32,000 - $4,400 ) / 5 years

Depreciation  for the year = $5,520

8 0
3 years ago
Karen doesn’t like driving to the local bank branch, but doesn’t think that it is secure to do financial transactions on her pho
tangare [24]
I say B. but maybe D
7 0
3 years ago
Read 2 more answers
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