Question #27
Reading: Reading 39 Economics and Investment Markets
PDF File: Reading 39 Economics and Investment Markets.pdf
Page: 9
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
Investors are least likely to increase their savings rate when:
Answer Choices:
A. Uncertainty about their future income decreases
B. Expected rates of returns increase
C. Uncertainty about their future income increases
Explanation
Investors would increase their savings rate when uncertainty about future income
increases and/or expected rates of return increase.