Many economists believe that a
high rate of business savings in the
United States is a necessary precursor
Line to investment, because business sav-
(5) ings, as opposed to personal savings,
comprise almost three-quarters of the
national savings rate, and the national
savings rate heavily influences the
overall rate of business investment.
(10) These economists further postulate
that real interest rates—the difference
between the rates charged by lenders
and the inflation rates—will be low when
national savings exceed business
(15) investment (creating a savings surplus),
and high when national savings fall
below the level of business investment
(creating a savings deficit ). However,
during the 1960’s real interest rates
(20) were often higher when the national
savings surplus was large. Counter-
intuitive behavior also occurred when
real interest rates skyrocketed from
2 percent in 1980 to 7 percent in 1982,
(25) even though national savings and
investments were roughly equal
throughout the period. Clearly, real
interest rates respond to influences
other than the savings/investment
(30) nexus. Indeed, real interest rates may
themselves influence swings in the
savings and investment rates. As real
interest rates shot up after 1979, for-
eign investors poured capital into the
(35) United States, the price of domestic
goods increased prohibitively abroad,
and the price of foreign-made goods
became lower in the United States. As
a result, domestic economic activity
(40) and the ability of businesses to save
and invest were restrained.
Q37:
The author of the passage would be most likely to agree with which of the following statements regarding the economists mentioned in line 1?
A. Their beliefs are contradicted by certain economic phenomena that occurred in the United States during the 1960’s and the 1980’s.
B. Their theory fails to predict under what circumstances the prices of foreign and domestic goods are likely to increase.
C. They incorrectly identify the factors other than savings and investment rates that affect real interest rates.
D. Their belief is valid only for the United States economy and not necessarily for other national economies.
E. They overestimate the impact of the real interest rate on the national savings and investment rates.
答案是a 或 e ?
Thanks!!
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