Which of the Following Reflects an Accurate Economic Chain of Events

question 175

Multiple Choice

Which of the following reflects an accurate economic chain of events?

• A) Investment finances savings,which causes the economy to shrink.
• B) Savings finances investment,which allows the economy to grow from a larger capital stock.
• C) Savings finances future consumption,which allows future production to increase from a larger capital stock.
• D) Investment finances future consumption,which allows incomes-and thus savings-to grow.
• E) Higher interest rates increase savings,which causes consumption smoothing.

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Definitions:

Multi-level Marketing

A strategy some direct sales companies use to encourage existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales.

Public Relations

Nonpersonal communication focused on promoting positive relations between a firm and its stakeholders.

Personal Selling

A direct marketing approach where sales representatives personally interact with potential customers to facilitate a purchase.

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The information or opinions returned by the market or consumers about a product or service after it has been launched or tested.