In general, what would be the likely effect of the following occurrences on the money and capital markets?
January 6th, 2018
In general, what would be the likely effect of the following occurrences on the money and capital markets?a. The savings rate of individuals in the country declines.b. Individuals increase their savings at savings and loan associations and decrease their savings at banks.c. The government taxes capital gains at the ordinary income tax rate.d. Unanticipated inflation of substantial magnitude occurs, and price levels rise rapidly.e. Savings institutions and lenders increase transaction charges for savings and for making loans.