The "No - Markets Fail Often" Camp Argues That an Increase

question 20

Multiple Choice

The "No - Markets Fail Often" camp argues that an increase in savings

• A) always causes savers and investors to be pessimistic about the future.
• B) always causes interest rates to fall and increase business investment.
• C) always causes interest rates to rise and decrease business investment.
• D) might cause interest rates to rise and decrease business investment but only if savers and investors are optimistic about the future.
• E) might cause interest rates to fall and increase business investment, but only if savers and investors stay optimistic about the future.

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Definitions:

Human Brain

The central organ of the human nervous system, responsible for thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Blind Spot

An area in the visual field that lacks detection due to the absence of receptor cells on the spot where the optic nerve enters the retina.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Retina

A layer of cells at the back of the eye that senses light and sends images to the brain for visual recognition.