Is savings harmful or beneficial to the economy? Contrast the two views on this issue.

Q: How does asymmetric information affect the process of transferring resources from surplus to deficit…

A: Asymmetric information: - It is a condition where one party involved in an economic transaction has…

Q: Investment projects can be viewed as analogous to bank loans. True or false?

A: An investment project is a proposal that includes information on the expenditure of the planned…

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: how does distortions affect the market of tradable and non-tradable goods?

A: Market distortions: It refers to the intervention of the government that affects the price and…

Q: If government spending were increased, what would occur to interest rates

A: Government spending refers to the money spent by the government on things like health care,…

Q: Suppose people can consume the income they earn or save and invest it at rate ?. If we tax wealth…

A: Wealth is the total value of all the assets tha owned by a person. It includes physical and…

Q: How does minimizing business or personal debt help prevent bankruptcies in a recession?

A: Business and personal debt refers to the borrowing by the people to do business or personal…

Q: How distortions affect the market of tradable and non-tradable goods and how it affects the…

A: the Market of tradeable goods refers to the industries whose goods are traded in international…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: The financial system must ensure the availability of efficient credit facilities to allow greater…

A: Credit Facilities: Credit facilities are loans that businesses take to run their operations. A…

Q: Suppose that Lady Gaga goes to Las Vegas to play poker and at the last minute her record company…

A: * ANSWER :-  *(a)

Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods

A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…

Q: Investors must go for investments that are liquid to ensure availability of funds when needed.  Is…

A: Liquidity is defined as the ability to exchange assets for cash. The more easier it is to convert an…

Q: Providing tax shelters through investment is one of the main functions of the financial system. *…

A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…

Q: The typical savings supply curve has a positive slope. If a nation's saving supply curve is…

A: People in this country save the same amount no matter what the interest rate is.Let's break down why…

Q: would bonds still be a good option for investment if interest rates are negative?

A: Negative-yielding bonds are monetary instruments that cause buyers to lose cash.  They are typically…

Q: Select economic problem occuring from an increase in the money supply and explain what happens.

A: Money:Money refers to anything which can be accepted in exchange of commodity or in repayment of…

Q: ay

A: The theory that shows how an individual seeks to smoothen his or her consumption over their lifetime…

Q: analyzes the responsibility of the financial system in the demand for investment versus the supply…

A: The financial system's primary economic role is to transfer cash from net savers (those who spend…

Q: Which of the following is not correct? Question 3 options:   By saving a larger portion of its…

A: option c is  is not correct  financial intrementis not are only type of financial institutions…

Q: How do fiscal and monetary policies influence a nation's economy?

A: Title: Grasping the Fundamental Concepts and Differences Between Fiscal and Monetary PoliciesIn this…

Q: In your own words, describe a cashless society?

A: Most economists believe that money evolved as a trading medium because it was more flexible than…

Q: what happens if consumers expect future interest rates to fall?

A: An interest rate is the amount of money a lender charges a borrower for the use of money, expressed…

Q: One of the tasks of a Financial System include providing affordable loans to all consumers and…

A: Allocation of savings into channels of investment in the economy is being done by the financial…

Q: How can market forces of supply and demand affect interest rates and the economy

A: The demand and supply affect interest rates in the money market. The money market is the market that…

Q: Major energy companies have recently started moving their investments away from oil exploration due…

A: Investment in renewable energy by many countries is one of the wise decisions from the long0run…

Q: True or false and why? the paradox of thrift implies that any change in autonomous savings will be…

A: Economic decision-making is critical in navigating the route to wealth. It governs how resources are…

Q: What impact will the economy face if institutions keep on showing more flexibility on giving loans…

A: The economy is the study related to choice and scarcity.

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: Describe the paradox of savings. b. When do savings become a positive virtue and when does it…

A: The macroeconomic functions and activities include the major considerations and analysis through…

Q: Predict how possible changes in monetary and/or fiscal policy may impact the supply and demand of…

A: Monetary PolicyMonetary policy refers to the actions undertaken by a country's central bank or…

Q: Please explain in three well-structured paragraphs the impact of a change in the savings rate on the…

A: Saving is the process of setting aside a portion of current income for future use, or the flow of…

Q: If the default premium decreases, what is the effect on the consumption and savings of an individual…

A: An extra interest rate that borrowers might be required to pay to lenders to cover the possibility…

Q: Can you give me two pros and cons about cashless economy? Also, I need some backgroud information.

A: A cashless economy is one in which online payments such as net banking, mobile banking, digital…

Q: individuals may get funding from the capital markets.

A: Capital markets are defined as the market where the trading of shares, debentures, long-term…

Q: What is foreign finance? Give example

A: Foreign Finance is also known as international finance

Q: Why is it incorrect/inappropriate to say that governments “invest” the “national savings?”

A: National savings refer to the total savings in an economy i.e by the public as well as private…

Q: The government, business and household sectors are all suppliers of funds into the financial system.…

A: A financial system is a platform for transactions related to funds between financial market…

Q: Which of the following explains the relevance of financial institutions? a. Financial institutions…

A: Financial Institutions is a very broad term it includes banks, NBFCs, insurance companies, brokerage…

Q: What would happen if suddenly banks stop lending (this has happened in the past)? Can it grow?

A: When one or more individuals, businesses, or other entities lend money to additional individuals,…

Q: If signs of an economic slowdown abroad and domestically do materialize, what would be your…

A: Economic Slowdown: It is a regular phase of a economic cycle where the economic growth of a country…