« previous next »

Author Question: Define savings rate. If the aggregate savings in an economy is 10,000 and the aggregate income in ... (Read 111 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?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Past and Future Use of Aggregate Past and Future Use of Aggregate
Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Ten Leading Causes of Death in Low-Income Countries, 2008 Ten Leading Causes of Death in Low-Income Countries, 2008
Infant mortality by income quintile, urban Canada, 1996 Infant mortality by income quintile, urban Canada, 1996
What rate, compounded once every 3 years, is equivalent to 9% effective rate? What rate, compounded once every 3 years, is equivalent to 9% effective rate?
Video: Febrile Seizure

For a complete list of videos, visit our video library