Increases Householdsʹ Saving

question 7

Multiple Choice

increases householdsʹ saving.

• A) A tax cut that increases disposable income
• B) A decrease in the real interest rate
• C) Higher expected future income
• D) A stock market boom that increases the purchasing power of householdsʹ wealth

Understand the concept of power and authority within social organizations.

Recognize different forms of authority (traditional, charismatic, legal-rational) and examples of each.

Analyze the role of state and politics in the exercise of power and authority.

Identify and understand the institutions involved in the exercise of power and authority.

---

Definitions:

Demand for Money

The desire or need by individuals and businesses to hold money instead of other assets, due to its liquidity and ability to facilitate transactions.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the principal, charged by lenders to borrowers for the use of assets.

Supply of Money

The overall pool of monetary resources in an economy at a given period.

Interest Rate

The cost of borrowing money or the return on savings, often expressed as a percentage of the principal.