From a Macroeconomic Perspective, the Problem of Low Household Saving

question 47

Multiple Choice

From a macroeconomic perspective, the problem of low household saving has probably been overstated because:

• A)household saving is not related at all to an economy's ability to accumulate new capital.
• B)household saving has been increasing steadily over the last three decades.
• C)it is national saving, not household saving, that allows an economy to accumulate new capital.
• D)household saving represents a smaller share of national saving than does public saving.

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Definitions:

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The method of analyzing something through reasoning to arrive at a verdict or decision.

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The ability to produce original and valuable ideas or solutions through imagination and lateral thinking.

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