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QUESTION 1 What are the similarities and differences between private and public saving? Use private saving as a percent of disposable personal income (PSAVERT = Y-T-C) and public saving as a percent of GDP (FYFSGDA188S = T-G) to construct a graph from 1947-present (use LINE 1 and LINE 2). Private saving is monthly and public saving is annual, but that is okay. Attach File Browse Local Files QUESTION 2 Which of the following statements best describes what happened to the personal saving rate (i.e., private saving by households) from the 1970s to the period of the 2000s just prior to the Financial Crisis (2007-2009)? O Fluctuated more than any other time in history O Increased by about 10 percentage points O Was roughly unchanged O Decreased by about 10 percentage points QUESTION 3 The personal saving rate decreased somewhat after the Financial Crisis (2007-2009) but was higher than what it was in the 1990s. O True O FalseQUESTION 4 Which of the following statements best describes what happened to the personal saving rate during and after the COVID-19 Pandemic recession (2020)? O The personal saving rate plummeted to its lowest levels ever but now has risen almost back to where it was O Surprisingly, the personal saving rate didn't change much during the COVID-19 Pandemic O The personal saving rate skyrocketed to its highest level ever but has now fallen below its average level during the 2010s. O None of the above QUESTION 5 What is the most likely reason(s) that the personal saving rate changed the way it did during and after the Financial Crisis (2007-2009) and COVID-19 Pandemic (2020- 2022)? Consumers became very unsure about what they might need to buy in the future O Employed consumers worried they might lose their jobs and not have enough money O Households and businesses received extra money from the government (federal surplus fell, i.e. deficit rose) and needed time to decide whether to spend it now or save it to pay higher taxes later O Probably none of the above O Possibly all of the above QUESTION 6 Although the federal surplus declined (federal deficit rose) more after the Financial Crisis (2007-2009) and COVID-19 Pandemic (2020) than during the Great Depression (1930s), the changes were not nearly as large as during World War II. O True O FalseQUESTION 7 Except for a brief time in the late 1990s during the so-called New Economy and Dot Com Boom, the federal surplus has been trending upward (federal deficit trending downward) since the mid-1970s. O True O False QUESTION 8 Which of the following statements best describes what happens to the federal surplus (deficit) during the business cycle? O It's hard to draw a strong conclusion about the regularity of fluctuations in the federal surplus (deficit) over the business cycle O The federal surplus always decreases (deficit increases) during recessions indicated by the gray-shaded areas O The federal surplus always increases (deficit decreases) during expansions indicated by the white unshaded regions O None of the above QUESTION 9 When the federal surplus turns negative (deficit turns positive), how is the government funding the shortfall? O By creating ("printing") more money O By issuing more federal government bonds O Most likely both (a) and (b) O Almost surely neither (a) nor (b)QUESTION 10 What is the recent history of U.S. stock prices? Use the price of nearly all stocks (top 5000) (WILL5000INDFC), the price of technology stocks (NASDAQCOM), and the price of the Dow Jones Industrial Average of 30 prominent "blue chip" stocks (DJIA) to construct a graph from Jan 1, 1980-present (use LINE 1, LINE 2, and LINE 3). Select Units = Index (Scale value to 100 for chosen date) for all lines and set Jan 1, 2015 = 100. (This makes the variables comparable so we can compare their relative growth rates). NOTE: A stock price index is like the average price of all stocks in the index. Attach File Browse Local Files QUESTION 11 Stocks are a pretty bad long-term investment because stock prices tend to decrease steadily over very long periods of time (10+ years). O True O False QUESTION 12 Match the type of stock price index to its relative performance since 2015. Wilshire 5000 (nearly all stocks) A. Slowest growth NASDAQ (technology stocks only) B. Average growth Dow Jones Industrial Average (30 prominent "blue chip" stocks) C. Fastest growthQUESTION 13 From late 1998 to early 2000. the NASDAQ (technology stocks) increased much more than the Wilshire 5000 (nearlyr all stocks) and then fell back to a similar level by mid-2001. Which statement(s} best describe(s] what happened during this so-called Dot Com Boom-Bust period? 1;. The NASDAQ was caught in a "bubble" where people valued technology stocks a lot more than theyr were worth just because they were rising so fast and then it burst L; People thought the Internet was the greatest invention of all time and expected the economy to grow a lot more in the future than ever before ,' The government subsidized and protected technology rms more than any other type of firms in recent history so they were much more protable but only for a while A It's too hard to tell for sure because economists and finance experts still don't understand completely how stock prices are determined k, Maybe all ofthe above