Which of the Following Is NOT a Source of Inefficiently

question 4

Multiple Choice

Which of the following is NOT a source of inefficiently low savings?

• A)shortsightedness of the current population
• B)too high of an interest rate
• C)risk aversion among investors
• D)government taxation/borrowing

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Definitions:

Variable Expenses

Expenses that vary directly with the amount of output or activity level.

Fixed Expenses

Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Fixed expenses are costs that do not change in the short term regardless of the level of production or sales, such as rent, salaries, and insurance premiums.