Recently, it was observed that people have started saving more rather than spending. This has impacted the demand for luxury goods and services. The decline in the demand led to unemployment in the related sectors. What can be a primary solution to reduce the unemployment levels in the country?

a. increase the interest rates

b. impose fine for savings

c. force industries to rehire employees

d. reduce the interest rates

e. import goods and services

Ok so I think the answer would be lower interest rates because then people would have more money to spend, which would buy more products that would increase money to hire more people

  1. 👍
  2. 👎
  3. 👁
  1. I agree with you.

    1. 👍
    2. 👎
  2. . What can be a primary solution to reduce the unemployment levels in the country?
    increase the interest rates
    impose fine for savings
    force industries to rehire employees
    reduce the interest rates
    import goods and services

    1. 👍
    2. 👎
  3. (D) Reduce interest rates. Let people save their money. Raising interest rates would only increases the difficulty in saving money, forcing people to clutch their savings even tighter. In a system where people are able to store and save their money more efficiently, then the more money they can afford to spend. This may allow people to continue to purchase luxury goods, because they won't have to sacrifice necessities. With this hypothetical rise in demand, there may also be a rise in employment, which would eventually counteract the problem presented in this question.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. geography

    Can you please check my answers thank you 1. Why did Olmec farmers move their farms from time to time? A. As their families grew, people needed larger farms. B. Maya invaders took over their farmlands. C. Heavy rains flooded their

  2. SS

    Okay i am sorry but please cheats my answers How did the the control of fire affect the development of early humans? Select all that apply. A.

  3. social studies

    Which of the following is an effect of the Agricultural Revolution in Middle America? A. People settled down into villages. B. People began hunting and gathering more. C. People stopped hunting and gathering. D. People started

  4. Algebra

    a) Research the financial crisis in Greece and summarize it in one-two paragraphs. Note: Paragraphs consists of three complete sentences. This is an academic assignment where you need to use proper grammar (i.e., capitalization,

  1. help please:)

    Which one of the following statement best describes what a budget is ? A.A method of figuring out the inflation rate. B.An organized plan for spending money C.A way to keep people from really enjoying life. D.A plan for saving

  2. Macroeconomics

    Assume the simple spending multiplier equals 10. Determine the size and direction of any changes in the aggregate expenditure line, real GDP demanded, and the aggregate demand curve for each of the following changes in spending:

  3. Math

    Write the expression to represent the given situation.Be sure to define your variable. Sam currently has $150 in a saving account and is saving $10 per week

  4. Mathematics

    The figure below summarizes the national average spending patterns for people of different ages. Percentage of Spending by Category and Age Group Daniela is 29 years old and spends $450 per month on rent, while her monthly salary

  1. history

    How has the use of e-commerce impacted local markets? Virtual economies have emerged to meet the needs of online shoppers that favor the use of digital currency, causing inflation and reducing the size of local markets.

  2. Precal

    The number of people in a town of 10,000 who have heard a rumor started by a small group of people is given by the following function: N(t) = 10,000/(5 + 1245e-.97t) 14. How many people were in the group that started the rumor?

  3. budgeting

    Which one of the following statements best describes what a budget is? A. A method of figuring out the inflation rate. B. An organized plan for spending money. C. A way to keep people from really enjoying life. D. A plan for

  4. Math

    Diego has $11 and begins saving $5 each week toward buying a new phone. At the same time that Diego begins saving, Lin has $60 and begins spending $2 per week on supplies for her art class. Is there a week when they have the same

You can view more similar questions or ask a new question.