« previous next »

Author Question: Define savings rate. If the aggregate savings in an economy is 10,000 and the aggregate income in ... (Read 99 times)

abern

  • Hero Member
  • *****
  • Posts: 533
on: Jun 30, 2018
Define savings rate. If the aggregate savings in an economy is 10,000 and the aggregate income in the economy is 70,000, what is the savings rate in the economy?
 
  What will be an ideal response?

Question 2

Suppose you are offered a new smartphone in exchange for thirty hours of your work in your friend's garden. This is an example of
 
  A) money as a standard of deferred payment. B) barter.
  C) money as a medium of exchange. D) money as a store of value.


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #1 on: Jun 30, 2018
Answer to Question 1

The savings rate refers to the fraction of income that households save. It can be obtained by dividing aggregate savings by aggregate income.
In this case, the savings rate = 10,000/70,000 = 0.1428 = 14.28.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

abern

  • Hero Member
  • *****
  • Posts: 533
Reply #2 on: Jun 30, 2018
Thank you


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

This chart illustrates the four quadrants in which we can place the relationships between the state This chart illustrates the four quadrants in which we can place the relationships between the state
Factors that Influence Pulse Rate Factors that Influence Pulse Rate
Race-Ethnicity and Income Extremes Race-Ethnicity and Income Extremes
Race-Ethnicity and Income Extremes Race-Ethnicity and Income Extremes
Capital’s Share of Income in a Cross-Section of Countries Capital’s Share of Income in a Cross-Section of Countries
Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for ... Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for ...
Video: Conjunctivitis

For a complete list of videos, visit our video library