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:

Bargaining Power

The ability of one party to dictate terms or influence negotiations in their favor due to their position or resources.

Rivalry of Existing Competitors

The intensity of competition among current players within the same industry or market, which can influence pricing, product development, and marketing strategies.

Patented Technologies

Innovations protected by legal rights, granting the patent holder exclusive use and commercial benefits.

High Capital Requirements

The need for significant financial investment to start or maintain operations in certain industries or business activities.