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Is the main function of financial markets is to direct consumers' saving to firms that use it for investment spending?
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What is planned investment?
spending be firm in acquiring the capital goods and inventories Capital and Gold is good investment planning. Gold investments are sure to yield the best profits to us.
What steps are involved in debt recovery?
One can recover from debt by well planning your financial spending, Stop unnecessary spending on things which are not very important at present. Start saving and you can even think of a debt reduction program.Answer{| |- | One can recover from debt by well planning your financial spending, Stop unnecessary spending on things which are not very important at present. Start saving and you can even think of a debt reduction program. You can try BillsIQ tool to check your financial health.|}
Are spending and saving habits culturally formed?
Yes. We do not have a financial IQ when we were born. Our financial literacy were formed when we are growing up. We may not have known it but we are influenced by our community and by our parents.
What happens when banks are too lenient in loaning money to consumers and businesses?
It causes a boom in spending and production that may not be paid back.
When real GDP is increasing what happens to jobs and consumers spending?
Consumer spending is 2/3rds of GDP, so definitionally if GDP is rising it is highly likely that consumption is increasing which would spur job creation. Net-net: 1. Consumer spending up; 2. Jobs up.
What are the injection and leakage in the economy?
In terms of consumer spending, injection is spending by consumers on consumables (consumption) and leakage is spending by consumers on non-consumables (e.g.) savings; investment; taxation).
Why is a current account surplus equivalent to foreign investment?
A country where income is greater than spending, has saving greater than investment, and a current account surplus. The excess of income over spending must be balanced by foreign investment, so there will be a financial account deficit to match the current account surplus.
What is the most likely result of an increase in interest ratesĀ a. investment spending risesĀ b. investment spending fallsĀ c. the economy speeds upĀ d. unemployment falls?
b. investment spending falls
What is the private investment multiplier?
the private investment multiplier is the change in national income resulting from a change in private investment spending
What is the crowding out?
A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect
The component of the US GDP are?
I'll give you the expenditure approach Consumption- share of GDP from consumer spending Investment-share from firm investment Government Spending-share of government spending Net Exports (exports-Imports)
What is investor confidence?
Investor confidence refers to the level of trust and optimism that investors have in the financial markets and their expectations for future returns on investment. It is influenced by various factors such as economic conditions, political stability, market performance, and regulatory environment. Higher investor confidence typically leads to increased investment activity, while lower confidence can result in reduced investment and market volatility.
How can expectations about the future change consumer behavior?
Expectations about the future can influence consumer behavior by affecting consumers' confidence in their financial situation. Positive expectations may lead to increased spending, while negative expectations can result in decreased spending as consumers become more cautious. Additionally, expectations about future product availability or economic conditions can impact buying decisions.
What is the crowding-out effect?
A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect
Why does investment spending not equal saving in the circular flow?
In the circular flow, investment spending does not equal saving because goods and services are still needed therefor consumption still requires spending in return pays taxes and companies.
What are four types of spending that represent the AD curve?
Consumption, Investment, Government spending, and Net Taxes
How much time consumers spending online by devices?
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