How can personal finance decisions affect the economy? (3 points)
a. Saving puts less of your money into the economy***
b. Spending your money doesn't put money into the economy.
c. investing your money can aid businesses and services ***
d. Widespread credit issues will ultimately cause banks to fail.****
The answers for connexus are
A,C,D
B,C,D
B
A
B
A
A
B
1. A, C, D
2. B, C, D
3. B.
4. D.
5. B.
6. A.
7. A.
8. B.
4 is a not d
4 is A
pineapples<3 is correct :)
I agree.
does anyone have the other answers i'm struggling?
Thx a lot!!
To understand how personal finance decisions can affect the economy, let's break down each point:
a. Saving puts less of your money into the economy:
When you save your money rather than spending it, you are not injecting that money into the economy immediately. This can lead to decreased consumer spending and potentially slower economic growth. If many individuals save simultaneously, it may reduce the overall demand for goods and services, impacting businesses and employment opportunities.
b. Spending your money doesn't put money into the economy:
This point seems to be incorrect. When you spend your money, it directly enters the economy. Consumer spending is a crucial component of economic growth as it supports businesses and creates revenue, which then leads to increased employment opportunities and further economic activity.
c. Investing your money can aid businesses and services:
When you invest your money, you provide capital to businesses and services. This capital can enable these entities to grow, expand, and create jobs, ultimately leading to economic development. Investments can also fuel innovation, productivity, and technological advancements, which can benefit the economy as a whole.
d. Widespread credit issues will ultimately cause banks to fail:
While it is true that widespread credit issues can have severe implications for the banking sector, leading to the failure of some financial institutions, it is important to note that the impact on the economy is not limited to banks alone. A credit crisis can result in reduced lending, higher interest rates, and a lack of access to credit, which can hinder business investments, consumer spending, and overall economic activity, potentially leading to a recession or economic downturn. The collapse of banks can further exacerbate these effects.
In summary, personal finance decisions can have a significant impact on the economy. Saving too much without spending can slow down economic growth, while spending and investing money can support businesses, jobs, and economic development. However, widespread credit issues can have severe consequences for both financial institutions and the overall economy.