Keynes Believed That When Savings Exceeds Investment

question 46

Multiple Choice

Keynes believed that when savings exceeds investment

• A)the interest rate will decline and equate savings and investment.
• B)excessive savings will reduce demand and result in unemployment.
• C)wage rates would decline reducing excess savings.
• D)prices would increase causing savings to be reduceD.

Understand the concepts of conflict theory as applied to family structures and social policies.

Analyze the role of social policies in shaping family structures and dynamics.

Appreciate the feminist contributions to recognizing domestic labor and challenging traditional family models.

Examine the symbolism and rituals used by non-traditional families to establish identity and legitimacy.

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Definitions:

Highly Compensated Employees

Employees who receive compensation from the business exceeding a specific threshold set by the IRS, subject to additional tax regulation.

Tax-Deferred Plans

Investment accounts that allow taxes on the principal and/or earnings to be paid at a future date instead of the year the investment earns income.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit.

IRA Contribution

Money placed into an individual retirement account (IRA) that may qualify for tax deductions or other tax advantages.