Author Question: Savings accounts pay very low rates of interest. The average return on the stock market is about ... (Read 18 times)

fasfsadfdsfa · **on:** Jul 1, 2018

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 · **Reply #1 on:** Jul 1, 2018

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