Which of the Following Is True of Saving and Investment

question 58

Multiple Choice

Which of the following is true of saving and investment?

• A)Individuals save for the same reasons that businesses invest.
• B)Savings provide loanable funds that guarantee investment.
• C)Both saving and investment depend on the current level of income.
• D)The amount of saving may not be equal to the amount of investment.

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Definitions:

Public Compliance

The act of conforming to the expectations or demands of others in open settings, often to fit in.

Private Acceptance

The genuine internalization and embracing of a particular belief or attitude, often as a result of social influence.

Pluralistic Ignorance

Looking to others for cues about how to behave, while they are looking to you; collective misinterpretation.

Medium-Sized

Referring to something that falls approximately in the middle of a scale or range in terms of size or capacity.