Savings are an example of
A) a flow concept.
B) a stock concept.
C) a bounded rationality concept.
D) an investment concept.

Question

Quizplus · Accepted Answer

Savings are an example of a stock concept because they are a measure of the amount of money that has been accumulated over time and are not measured over a specific period. A flow concept would be something that is measured over a period of time, such as income or expenses. Bounded rationality is a concept related to decision-making and investment is a separate concept altogether.

Savings Are an Example of