Holding Other Factors Constant, If Growing Concerns About Job Security

question 51

Multiple Choice

Holding other factors constant, if growing concerns about job security raise precautionary saving, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Organizational Form

The structure or framework adopted by a business or entity that dictates its operational and governance approach, such as a corporation, partnership, or sole proprietorship.

Owners' Acts

Legal actions or decisions made by the owners of a property or business.

Franchisee

One receiving a license to use another’s (the franchisor’s) trademark, trade name, or copyright in the sale of goods and services.

Independent Businessperson

An individual who operates and manages their own business, making decisions independently, often bearing the risks and rewards of the enterprise.