There Has Been Some Concern in the United States That

question 59

Multiple Choice

There has been some concern in the United States that people are not saving enough. This is a concern because

• A)decreases in saving lead to decreases in labor productivity.
• B)decreases in saving lead to decreases in investment.
• C)decreases in saving lead to increases in the capital stock.
• D)decreases in saving lead to increases in consumption in the future.

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Definitions:

Specific Power

Authority granted to an individual or body to carry out specific actions in a designated context or situation.

Agency Agreement

A legal contract creating a fiduciary relationship which empowers an agent to act on behalf of a principal in transactions.

Apparent Agency

A legal concept where a principal is liable for the acts of their agent, based on the appearance of authority the agent has been given, even if no actual authority was given.

Implied Agency

A form of agency relationship created by actions of the parties involved rather than a written agreement, suggesting one party can act on behalf of another.