Suppose Americans Become Concerned About Saving for Retirement And,as a Result,reduce

question 55

Multiple Choice

Suppose Americans become concerned about saving for retirement and,as a result,reduce their current consumption expenditures.Which of the following would you expect to occur as a result of this change?

• A)In the short run,unemployment will increase and inflation will fall.
• B)​In the short run,unemployment will increase and inflation will rise.
• C)​In the short run,unemployment will decrease and inflation will rise.
• D)​In the short run,unemployment will decrease and inflation will fall.

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Definitions:

Parent

A company that holds a controlling interest in another company, making the other company its subsidiary.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may differ significantly from its market value.

Debt Investments-HTM

Investments in debt securities that are held to maturity, meaning the investor plans to hold the securities until they are paid off at their maturity date.

Stock Investments

Securities representing equity or ownership interest in a corporation, allowing investors to gain dividends and potentially capital gains.