Savings accounts pay very low rates of interest. The average ...

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Savings accounts pay very low rates of interest. The average return on the stock market is about 10-12, in the long run. Why would anyone put money into a savings account?
 
  What will be an ideal response?

Question 2

Which of the following is not considered a rationale for the intervention of government in the market process in the United States?
 
  A) the redistribution of income
  B) the reallocation of resources
  C) the long-run planning of scarce resources
  D) the short-run stabilization of prices
  E) All of the above

[isabelt_18]

Answer to Question 1

The stock market gives a higher return for higher risk. Particularly if you are very averse to risk, you might find the savings account to be an attractive alternative.

Answer to Question 2

C

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Excellent

[Liddy]

Gracias!