Question : The savings rate is relatively low in developed economies because of
Option 1: low per capita income
Option 2: welfare programmes
Option 3: liquidity/borrowing constraint
Option 4: high interest rate
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Correct Answer: welfare programmes
Solution : The correct answer is welfare programs.
It is believed that saving is a result of consuming. Developed economies have lower rates of saving because their levels of consumption are higher than those of developing countries at the same income level. As was recently shown in the United States, welfare programs have also been linked to the dropping saving rate.
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Question : What is the parameter for economic development?
Option 1: Per capita monetary income
Option 2: National income
Option 3: Per capita rural income
Option 4: Population
Question : A sudden decrease in the birth rate would cause _______.
Option 1: increase in per capita income
Option 2: increase in investment
Option 3: increase in savings
Option 4: increase in loan requests
Question : Why boiling point of water decrease at high altitudes?
Option 1: Because of the high temperature
Option 2: Because of low atmospheric pressure
Option 3: Because of low temperature
Option 4: Because of high atmospheric pressure
Question : The main factor for the accelerated growth of population in India is
Option 1: low birth rate and low death rate
Option 2: a high birth rate and a falling death rate
Option 3: a rising birth rate and a rising death rate
Option 4: a high birth rate and high death rate
Question : Which of the following statements is/are correct concerning the demand for money? i. When the interest rate is high, the demand for money is low. ii. When the interest rate is low, demand for money is also low. iii. When the interest rate is high, demand for money is also high. iv. When the interest rate is low, demand for money is high.
Option 1: Only ii and iv
Option 2: Only i and iv
Option 3: Only ii and iii
Option 4: Only i and ii
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