Author Question: If consumers experience an decrease in lifetime income, current spending will ________, current ... (Read 60 times)

Bernana · **on:** Jun 30, 2018

If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________.

A) decrease; decrease; decrease
B) increase; decrease; decrease
C) increase; decrease; increase
D) increase; increase; decrease
E) decrease; increase; increase

Question 2

Explain the causes of the U.S. Savings and Loans crisis of the early 1980s.

What will be an ideal response?

Question 3

If consumers experience an increase in lifetime income, current spending will ________, current saving will ________, and future spending will ________.

A) increase; increase; increase
B) increase; decrease; decrease
C) increase; decrease; increase
D) increase; increase; decrease
E) decrease; increase; increase

moormoney · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

On the one hand, allowing S&L to make much riskier loans, for example, loans on commercial real estate. On the other hand, inadequate examination for the new situation and depositors, together with increase in interest rate due to increased inflation rate.

Answer to Question 3

A