Question

The financial sector channels savings out of the spending stream, thereby keeping it from the spending stream

a. true

b. false

Answer 1

False.

The financial sector channels saving into spending.

a. What is the risk of the financial sector expanding the spending flow too much?

a. If the financial sector contracts the spending flow too much, inflationary pressures in either goods or assets may result.
b. If the financial sector expands the spending flow too much, inflationary pressures in either goods or assets may result.
c. If the financial sector expands the spending flow too much, a recession in either goods or assets may result.
d. If the financial sector transfers more than just the right amount, a smoothly running economy will result


b. What kept this from happening in the United States in the period from 2000 to 2007?

a. Globalization produced a hyperinflation because foreign firms sold products at much higher prices than domestic firms.
b. Globalization kept inflation low because foreign firms could sell products at much lower prices than could domestic firms.
c. People lost faith in existing financial institutions, causing serious concerns about what might happen to the U.S. economy.
d. Existing financial institutions were running smoothly, so people did not pay attention to the financial sector.

a. If the financial sector expands the spending flow too much, inflationary pressures in either goods or assets may result.

b. Globalization kept inflation low because foreign firms could sell products at much lower prices than could domestic firms.

NOTE: I HOPE YOU WILL BE SATISFIED WITH MY ANSWER PLEASE DO PROVIDE RATING. THANK YOU AND HAVE A NICE DAY. :))