List four reasons why people save. What will be an ideal ...

[cherise1989]

List four reasons why people save.
 
  What will be an ideal response?

Question 2

Net public debt is
 
  A) the excess of annual tax revenues over annual government spending.
  B) the sum owed by the public to keep the Social Security system afloat.
  C) the portion of government debt held by private individuals and firms.
  D) the excess of annual government spending over annual tax revenues.

[diesoon]

Answer to Question 1

a. First, and foremost, people save for consumption after retirement.
b. People save to cope with possible emergencies or shortages of funds in the future.
c. People save to buy durable goods.
d. People save so that they can invest in a personal business.

Answer to Question 2

C