Question

Carl decides to keep his money under his mattress instead of putting it in the bank. If everyone made the same decision as Carl, what might the impact be on the national economy?

It would not affect the national economy greatly because individuals do not save much money.
It would help grow the national economy because the economy usually benefits when money is taken out of circulation.
It would hurt economic growth because banks often lend money to borrowers who then put that money back into circulation.
It would help economic growth by spurring the sale of mattresses.

Answer 1

Am I right with C?

Answer 2

@ihelpuuhelpme

Answer 3

Yes, you are correct.

You can eliminate answer choices A and B because it wouldn't help grow the economy, and doing what carl does WILL affect the economy. Which also means D is eliminated.

This means, C is correct, doing what carl does will affect the economic growth because banks have specific jobs are tasks.

Answer 4

Thank you!

Answer 5

You're Welcome! xd