Question

Please provide a detailed explanation for the following. Thanks!

Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.

a. The fact that many developing nations have not finished building their wired communication networks and focused on wireless, while most developed nations have maintained their wired, and continued to build out their wireless networks can be explained by the concept of opportunity cost.

b. If the unemployment rate decreases, we can be sure that the number of unemployed workers has decreased.

Answer 1

=> Solution tovore: explaination: the higher interest rate will make the Saving more attratice thus a household Awould be encouraged for more Savings for Future. when rate of interest increase, the rewards from Savings rises. It becomes relativy For future. less attrative for the householl to spend and/or hold cash. It is termed as Substietion effect - with highter interest as consumers Substitute Spending for saving. on suppoted will receive answers to marks. - GRAPH Rate of interest saving