Question

In: Economics

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth. 50...

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth. 50 words minimum [Hint: Ebenezer Scrooge is someone who is stingy, saves most of his money and doesn't spend money. How is being thrifty beneficial to the economy?]

Solutions

Expert Solution

we can derive the benefits of such people as follows-

  • when a person saves a major portion out of his income this concept is known as PROPENSITY TO SAVE.similarly when the income of a person increases and he saves a larger portion of his income then this is knowns as higher MPS (maginal propensity of consume).
  • when a person saves a larger portion of amount from his income then he/she can invest this amount into different investment plan and generate more passive income.it would help the corpus to expand its size by reinvestment.
  • financial institutions would have more loanable funds which would be helpful in credit creation.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Ebenezer Scrooge has invested 50% of his money in share A and the remainder in share...
Ebenezer Scrooge has invested 50% of his money in share A and the remainder in share B. He assesses their prospects as follows: A B Expected return (%) 16 18 Standard deviation (%) 21 25 Correlation between returns .6 a. What are the expected return and standard deviation of returns on his portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return % Standard deviation % b. How would your answer...
Ebenezer Scrooge has invested 50% of his money in share A and the remainder in share...
Ebenezer Scrooge has invested 50% of his money in share A and the remainder in share B. He assesses their prospects as follows: A B Expected return (%) 18 19 Standard deviation (%) 20 24 Correlation between returns 0.3 a. What are the expected return and standard deviation of returns on his portfolio? b. How would your answer change if the correlation coefficient were 0 or –0.30?
Using the concepts of incentives and good institutions, explain how a country might achieve economic growth.
Using the concepts of incentives and good institutions, explain how a country might achieve economic growth.
1. Briefly explain how we can use the production possibilities frontier (PPF) to explain economic growth .
1. Briefly explain how we can use the production possibilities frontier (PPF) to explain economic growth . 2. Eunhee works at a bank and receives $30,000 a year as her annual salary. She decided to quit this job and study at a graduate school for 2 years. If she gets admitted to the school, her annual cost of attending school will be the tuition of $9,000
Answer the following prompts: Explain why economic growth is important. Explain how economic growth is measured...
Answer the following prompts: Explain why economic growth is important. Explain how economic growth is measured using real GDP and per capita GDP. Use numerical examples in your explanation. Does an increase in economic growth necessarily improve the standard of living?
What is Economic growth? Explain in detail how education can determine economic growth. Explain in detail...
What is Economic growth? Explain in detail how education can determine economic growth. Explain in detail how savings and investments can determine economic growth.
What factors contributed to European economic growth between 950 and 1100 c.e.? Was this growth beneficial...
What factors contributed to European economic growth between 950 and 1100 c.e.? Was this growth beneficial or harmful to the majority of the population?
“Economic growth is always beneficial.” To what extent do you agree with this statement?
“Economic growth is always beneficial.” To what extent do you agree with this statement?
How might genetic testing be beneficial for prenatal testing?
How might genetic testing be beneficial for prenatal testing?
Explain how increased redistribution through progressive taxation and income transfers might affect economic growth. What kinds...
Explain how increased redistribution through progressive taxation and income transfers might affect economic growth. What kinds of changes in taxes and transfers could promote economic growth, if any? Are there ways to increase economic opportunity that would promote growth and decrease inequality?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT