2. A prolonged high national savings rate can cause a problem in the domestic economy because.. it causes low spending on infrastructure and export-capacity, even when many opportunities for productive investment exist. B) A) it is primarily the result of households choosing to save their income rather than spend it, which lowers revenue for domestic firms. C) it causes high spending on infrastructure, manufacturing-capacity, and real estate to continue long after this spending has ceased to be productive.
2. A prolonged high national savings rate can cause a problem in the domestic economy because.. it causes low spending on infrastructure and export-capacity, even when many opportunities for productive investment exist. B) A) it is primarily the result of households choosing to save their income rather than spend it, which lowers revenue for domestic firms. C) it causes high spending on infrastructure, manufacturing-capacity, and real estate to continue long after this spending has ceased to be productive.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
Related questions
Question
please quickly thanks !
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax