4)a. There is a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future because to increase consumption in the future households must save, thus providing funds for investment.consumers do not like to save.consumers like to both save and spend.producers always respond to what consumers want. b. Typically a higher saving rate is associated with higher investment rates and lower rates of growth.lower investment rates and higher rates of growth.higher investment rates and higher rates of growth.lower investment rates and lower rates of growth. c. Banks and other financial institutions eliminate poor business decisions.reduce the risk of borrowing.focus on long-term projects.help allocate resources to the most productive investments.

a) The income of the person is limited. If he wants to consume it in future, he has to save it…

Answered: a. There is a trade-off between the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

a. There is a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future because

to increase consumption in the future households must save, thus providing funds for investment.
consumers do not like to save.
consumers like to both save and spend.
producers always respond to what consumers want.

b. Typically a higher saving rate is associated with

higher investment rates and lower rates of growth.
lower investment rates and higher rates of growth.
higher investment rates and higher rates of growth.
lower investment rates and lower rates of growth.

c. Banks and other financial institutions

eliminate poor business decisions.
reduce the risk of borrowing.
focus on long-term projects.
help allocate resources to the most productive investments.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions