If SA Citizens Become Less Concerned with the Future and Save

question 21

Multiple Choice

If SA citizens become less concerned with the future and save less at each real interest rate, real interest rates

• A)rise and investment falls.
• B)rise and investment rises.
• C)fall and investment rises.
• D)fall and investment falls.

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Definitions:

Tax-Transfer Program

Government initiatives designed to redistribute income through the tax system, often aiming to reduce poverty.

Economic Equality

A state in which individuals or groups within a society have similar economic conditions, including access to resources, opportunities, and outcomes.

Income Inequality

The unequal distribution of income and wealth across individuals or groups within a society, often measured using tools like the Gini coefficient.

Monopoly Power

The ability of a monopoly (a single seller in the market) to control market prices for its product or service, often resulting in higher prices and lower output than in competitive markets.