Consider two alternatives to prepare for retirement: saving in a bank where your funds earn interest and buying fine arts that rises in value over time. each grows your retirement account overtime. A. if the rate of return on fine arts purchases fall, how would you expect the allocation of retirement funds to change across the macroeconomy? B.  if the national savings rate is based on the first option (savings in the bank), then what happens to the national savings rate when the allocation of retirement funds shifts as you describe in your response to part (a)? C.  In addition to art people often purchase real estates, stocks, and or bonds as part of their savings, even though these assets are also not counted in the official data on personal savings. Discuss how these purchases affect the official data on a national's savings rate.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Consider two alternatives to prepare for retirement: saving in a bank where your funds earn interest and buying fine arts that rises in value over time. each grows your retirement account overtime.

A. if the rate of return on fine arts purchases fall, how would you expect the allocation of retirement funds to change across the macroeconomy?

B.  if the national savings rate is based on the first option (savings in the bank), then what happens to the national savings rate when the allocation of retirement funds shifts as you describe in your response to part (a)?

C.  In addition to art people often purchase real estates, stocks, and or bonds as part of their savings, even though these assets are also not counted in the official data on personal savings. Discuss how these purchases affect the official data on a national's savings rate.

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