Recall Application 2, "World Savings and the U

question 42

Multiple Choice

Recall Application 2, "World Savings and the U.S. Current Account Deficits," to answer the following questions:
-According to the application, Japan has a low investment rate because:

• A) they cautious in making domestic investment following rapid economic growth.
• B) they do not need to use investment to make money.
• C) they do not know how to use investment to make money.
• D) they are cautious in making domestic investment following a slow economic growth.

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Definitions:

Equivalent Interest Rate

A rate that reflects the actual annual cost of a loan or the earnings on an investment, taking into account the effect of compounding.

False Consensus Effect

A psychological bias where individuals believe their own viewpoints, actions, and behaviors are more common in the general population than they actually are.

Actors

Individuals who perform in stage plays, movies, television shows, or other productions, portraying characters.

Observers

Individuals who watch or notice something without directly participating in the action.