Exam 21: Saving and Capital Formation

The demonstration effect suggests that people will save less when they

An explanation for the low saving rate in the United States consistent with the precautionary reason for saving includes:

At the national level, higher saving rates lead to ________ and higher standards of living.

Liabilities are:

The introduction of a new technology that raises the marginal product of new capital will:

Assets minus liabilities equal:

From a macroeconomic perspective, the problem of low household saving has probably been overstated because:

Which of the following is an example of the life-cycle motive for saving?

If net taxes paid by households increase:

Which of the following is an example of the precautionary motive for saving?

Holding other factors constant, if growing concerns about job security raise precautionary saving, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.

Suppose the following information describes the economy: GDP 2,000 Consumption 1,500 Government spending 300 Net taxes 400   Private saving equals ________; public saving equals ________; national saving equals ________.

Saving $100 will:

If total government tax collections equal $200 billion, transfer payments equal $75 billion, and government interest payments equal $10 billion, then net taxes equal:

The Cub Scouts have so far sold 100 tickets for their upcoming raffle, but they sell a constant additional 12 tickets every day. After three more days of selling tickets, the stock of tickets sold will be ________, and the flow of tickets sold will be ________.

The supply and demand for saving are brought into equilibrium by adjustments of the ________ rate.

Saving to meet long-term objectives-such as retirement, college attendance, or to purchase a home,-is called ________ saving.

Saving equals:

Taylor has the following assets and liabilities: Two cars \ 15,000 House \ 400,000 Mortgage \ 300,000 Cash \ 1,000 Car loars \ 5,000 Checkire accourtbalarce \ 3,000 Credit card balarce \ 3,000   What is the value of Taylor's liabilities?

To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.