Its also just plain bad for the economy for people to horde cash. Cash is supposed to be something that you hold onto temporarily, between your income and either goods, services, or investments.
If nobody saves, banks will have no capital to back loans and there will be a credit freeze.
Don't worry, I'm sure at the pace we are going there will soon be a government policy in place that tells us we can only have "X" amount of liquid cash in the bank.
Life is much better when the government tells us how to live.
No, it doesn't.
See the pay scale on the left had side? It is not fixed.
Ignorance on display, as usual....
is this the thread where tuba pretends to understand economics? yay
Its a toy model that presumes all jobs pay the same wage.
quote:Did you notice absence of X or Y units on the graph?
Maybe you can give the class some real world examples of supply or demand curves that are straight linear lines?