--%>

Long run economic growth

When people become optimistic about living longer and accordingly save more for their retirement years, in that case the decline into interest rates will tend to: (w) raise capital costs for business firms. (x) decrease investment expenditures. (y) discourage buying on installment plans. (z) stimulate long run economic growth.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Capital Market in Private Economy This

    This capital market is within this illustrated figure a closed private economy. The first plans of savers and investors are demonstrated as curves S0 and I0. There market equilibrium will exist at: (1) point a. (2) point b. (3) point

  • Q : Marginal revenue in kinked-demand model

    Into this "kinked-demand" model, such firm views the marginal revenue curve this faces as the: (1) linear curve acD2 for all prices. (2) linear curve deMR1 for all prices. (3) nonlinear curve adeMR1. (

  • Q : Problem on buying a used car You desire

    You desire to purchase a used car. The dealer knows accurately how well the car works and how much it must cost, although you are not sure of its value. This is an illustration of: (i) Asymmetric information. (ii) Dealer rights. (iii) Predatory pricing. (iv) First mov

  • Q : Interest rate in Determinants of Demand

    The demand curves for most of the nondurable consumer goods would be least influenced by modifications in: (i) Interest rates. (ii) House-hold income. (iii) Prices for related goods. (iv) Tastes and preferences. Ca

  • Q : Problem on harvesting-Production Can

    Can someone help me in finding out the right answer from the given options. The speculator who purchases wheat at harvest time throughout the late falls or early on winter, contracts for its storage, and then vends the wheat afterward in the winter, spring or in summe

  • Q : Problem regarding Substitution effect

    Can someone help me in finding out the right answer from the given options. John freshly learned that a hotdog-and-fries combo is accessible at a local mall for similar price as a slice of pizza at Gino’s, where he routinely ate lunch. He starts buying hotdogs m

  • Q : Problem on Monopsony Power The firm

    The firm probable to encompass significant monopsony power in its labor market would be: (1) Big cotton farm in the Texas hiring migrant workers. (2) Textile producer in the Hong Kong hiring factory workers. (3) Janitorial service firm in London hiring the maintenance

  • Q : Define Product Differentiation Product

    Product Differentiation: The Product differentitation is a condition when various producers under monopolistic competition, try to differentiate their product in terms of its size, shape, packaging, trade-mark and brand name. This is accomplish to att

  • Q : Determine absolute value of price

    Since this demand curve for DVD games is a straight line, and its slope: (w) is constant, although the absolute value of price elasticity of demand falls as output increases. (x) varies to compensate for changes within elasticity. (y) is constant, alt

  • Q : Market Demand versus Individual Demand

    What is the difference between Market Demand and Individual Demand?