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Because if people aren't getting anything for putting money in the bank, then they won't. And if people aren't putting money into banks, then the banks haven't got any money to lend to people. And if people can't get loans, then they can't buy big things like cars and houses, which are the type of things that makes the whole economy go round.
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∙ 13y ago
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What is the best conclusion of economic growth and economic development?
i know that as long as the number of birth rate rise, there will be a possible rise also from the population... that's all
Do you want a high or low interest rate in a savings bond?
If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.
What economic strategy does the governmnet use to stimulate savings?
The government would most likely increase taxes if ti wanted to get more savings. Congress has broad taxation powers, and can easily come up with a taxation scheme to boost government revenue.
What is Harrad domar model in economic development?
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
How can a country's high illiteracy rate affect its economic development?
The more people can read and write the more people can get jobs and higher standared of living.
One economic strategy the government encourages to stimulate savings is?
Raise the interest rate paid on savings and investments.(.Y.)
What are some goals of federal economic policy?
smoothing out business cycle growth low inflation high savings rate
What was the average savings interest rate in 1995 - 2011?
average savings account rate in 1995?
What is the best conclusion of economic growth and economic development?
i know that as long as the number of birth rate rise, there will be a possible rise also from the population... that's all
How does economics help to improve the world?
it is really that, when you be educated it contributes to increase in literacy rate which contributes to economic development
Do you want a high or low interest rate in a savings bond?
If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.
What was the average savings interest rate 1993?
The average interest rate on savings accounts is 3.5 to 4%
What economic strategy does the governmnet use to stimulate savings?
The government would most likely increase taxes if ti wanted to get more savings. Congress has broad taxation powers, and can easily come up with a taxation scheme to boost government revenue.
what does having a savings rate do for you?
Having a savings rate can do alot for you , I would take to a banker about it more to find out if it is suitable for you .
What is the average savings interest rate 2008-2009?
The average savings interest rate in banks is 3.5 to 4%
What is Harrad domar model in economic development?
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
What are savings rates?
Savings rate is the amount of money saved divided by disposable income. The savings rate is expressed as a percentage. Saved meaning money put away and not spent.
