In 2000s, Low Savings Rates Are Attributed To

question 21

Multiple Choice

In 2000s, low savings rates are attributed to:

• A) Rapid economic growth.
• B) Stock market boom.
• C) Declining interest rates and increased refinancing of the mortgages.
• D) Inefficient monetary policy.

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, indicating a return above the firm's opportunity costs.

Average Rate

The mean value of a set of rates or percentages, calculated as the sum of all rates divided by the number of rates.

Above Average Profits

Earnings that surpass the norm or average level within a particular industry or market.

Perfectly Elastic Demand

A market situation where demand for a product can drastically change to infinity with the slightest change in its price.