Define savings rate. If the aggregate savings in an economy is ...

[abern]

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]

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

[abern]

Thank you

[miss.ashley]

No problemo