For domestic saving to occur, it is necessary to have:
A)a laissez faire economy.
B)a balanced fiscal budget.
C)a large number of government subsidies.
D)a stable system of property rights.
E)a highly developed banking system.

Question

Quizplus · Accepted Answer

A stable system of property rights is necessary for domestic saving to occur because it ensures individuals and businesses have the legal right to save and accumulate wealth without fear of expropriation or confiscation. Without property rights, there is no incentive to save or invest in the future. While the other choices may be desirable for overall economic stability, they are not necessary conditions for domestic saving to occur.

For Domestic Saving to Occur, It Is Necessary to Have