Fill in the blanks to complete the following passage regarding the U.S. savings rate.Drag word(s) below to fill in the blank(s) in the passage.It generally fell for nearly three decades before reaching aIn 1982, the savings rate rose abovelow of2008-2009, the savings rate climbed as high asrange.in 2005. Yet as real estate and stock prices fell in the aftermath of the Great Recession ofin 2012, before falling to about the 6-8%0% 6% 10%30% 12% 2.2%

Recession:It is a situation when the economy slows down. The level of GDP was reduced. The…

Fill in the blanks to complete the following passage regarding the U.S. savings rate. Drag word(s) below to fill in the blank(s) in the passage. In 1982, the savings rate rose above low of it generally fell for nearly three decades before reaching a in 2005. Yet as real estate and stock prices fell in the aftermath of the Great Recession of in 2012, before falling to about the 6-8% 2008-2009, the savings rate climbed as high as range.

Fill in the blanks to complete the following passage regarding the U.S. savings rate. Drag word(s) below to fill in the blank(s) in the passage. In 1982, the savings rate rose above low of it generally fell for nearly three decades before reaching a in 2005. Yet as real estate and stock prices fell in the aftermath of the Great Recession of in 2012, before falling to about the 6-8% 2008-2009, the savings rate climbed as high as range.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Several factors may influence interest rates for individual securities in an economy like the United Kingdom. One such factor is inflation. Explain fully how the factor may influence interest rates of individual securities in an economy.
If expectations about future income change, there is no change in saving until income actually changes. a decrease in saving if people expect income to increase in the future. an increase in saving if people expect income to increase in the future. a decrease saving if people expect income to decrease in the future. a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
5. The market for loanable funds and government policy The following graph shows the loanable funds market. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Consider each scenario separately by returning the graph to its starting position when moving from one scenario to the next. (Note: You will not be graded on any changes you make to the graph.) INTEREST RATE (Percent) Demand LOANABLE FUNDS (Billions of dollars) Supply Demand Supply
2. In a two-period model, Jennifer expects to earn income of £15,000 in the second period but nothing in the current period; whereas Martin has income of £15,000 in the current period (everything adjusted for inflation). The real interest rate for both borrowing and lending is 30%. a) What is the present value of Jennifer’s future income? b) Show diagrammatically why Martin is better off than Jennifer. c) Show diagrammatically the impact of a fall in the interest rate for both Martin and Jennifer. Is it possible for a fall in interest rates to make Jennifer better off than Martin? d) Comment briefly on the implication of your answer to part (c) for the effectiveness of monetary policy carried out by changing the central bank interest rate.
Selim has no income in period 1 (consumption now) and an income of 1800Ł in period 2 (consumption later). The current interest rate is 20% (r=0.2) on consumer loans. Based on this information, answer the following questions a. What is the maximum amount that Selim can borrow to spend in period 1? Explain your answer. Can he spend 600 in period 2 and borrow 1000 in period 1?
Textbook: Macroeconomics by P. Krugman & R. Wells (5th Edition) Using the accompanying diagram, explain what will happen to the market for loanable funds when there is a fall of percentage points in the expected future inflation rate. How will the change in the expected future inflation rate affect the equilibrium quantity of loanable funds?