What is one potential negative effect of increased saving on the economy?
Can Saving Too Much Money Cause a Recession?: Side Effects of Saving

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Business
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7th - 12th Grade
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It boosts economic growth.
It leads to increased spending.
It can cause businesses to run out of funds.
It improves employment rates.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens if everyone stops spending all at once?
Businesses thrive and employment rises.
Businesses run out of funds and unemployment rises.
Banks find more ways to lend money.
Economic growth figures improve.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does excessive saving affect the quality of life according to economists?
It enhances the quality of life by increasing savings.
It improves the quality of life by reducing wants.
It reduces the quality of life by limiting consumption.
It has no impact on the quality of life.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential consequence of banks having too much savings and not enough demand for loans?
Banks will increase interest rates.
Banks will make riskier loans.
Banks will make safer loans.
Banks will stop offering loans.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the term used to describe the process of sorting out productive businesses during economic downturns?
Economic natural selection
Economic transformation
Economic evolution
Economic revolution
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