When Government Saving Is Negative

question 89

Multiple Choice

When government saving is negative,

• A)the real interest rate rises.
• B)investment increases.
• C)the real interest rate falls if crowding- out occurs.
• D)the real interest rate falls.
• E)the supply of loanable funds increases.

---

Definitions:

Minimum Wage

The lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour.

Social Policy

Policies and principles aimed at improving the welfare and quality of life for the population, typically in areas such as health, education, and social security.

FLSA

The Fair Labor Standards Act, a U.S. labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week.

Minimum Wage

The lowest legal hourly pay that employers can give to workers, set by government law.