How Can a Global Savings Glut Affect the United States

question 100

Multiple Choice

How can a global savings glut affect the United States?

• A) It can reduce the world real interest rate, thus encouraging borrowing by Americans.
• B) It can increase the world real interest rate, thus encouraging saving by Americans.
• C) It can reduce the supply of loanable funds for the United States.
• D) It can reduce the demand for loanable funds for the United States.

---

Definitions:

Highly Involved Relatives

Family members who actively participate or engage significantly in the care, support, or affairs of their loved ones, showing a deep commitment to their wellbeing.

Family Structure

The composition and organization of a family, including the relationships and roles within the household.

Emotional Support

Emotional support involves providing empathy, love, and encouragement to someone, helping boost their emotional well-being during times of stress or difficulty.

Social Support

The assistance and comfort received from friends, family, and others, contributing to an individual's sense of belonging, self-esteem, and stress-reduction.