Related to the Economics in Practice on P

question 116

Multiple Choice

Related to the Economics in Practice on p.472: According to the "paradox of thrift," as individuals increase their saving,

• A)income in the economy increases because there is more money available for firms to invest.
• B)income in the economy increases because interest rates will fall and the economy will expand.
• C)income in the economy will remain constant because the change in consumption equals the change in saving.
• D)income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract.

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Definitions:

Kyoto Treaty

An international agreement adopted in 1997 aiming to reduce greenhouse gas emissions and combat global warming, which the United States signed but did not ratify.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Corporate Ownership

Refers to the ownership of a company by individuals or entities, often represented by the possession of company shares, which grants certain rights and responsibilities regarding the company's management and earnings.

Advertising

The activity or profession of creating and distributing content, often paid, to promote products, services, or brands to a targeted audience.