In a Consumer-Oriented Economy,what Can We Conclude About the Decision

question 2

Multiple Choice

In a consumer-oriented economy,what can we conclude about the decision to save in order to promote economic growth?

• A)It must be enforced by high levels of taxation.
• B)It means a sacrifice of current consumption in order to enhance future consumption.
• C)It cannot be expected to benefit future generations.
• D)It can be expected to cause widespread unemployment.

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Definitions:

Primary Market

A part of the capital market where new securities are initially sold to investors, typically through underwriting.

Secondary Market

A market where previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

Default Risk

The risk that a borrower will not make the required payments on a debt obligation, leading to a default situation.

U.S. Government Debt

U.S. Government debt, also known as sovereign debt, is the total amount of money borrowed by the Federal government through the issuance of securities by the Treasury and other federal government agencies.