True/false/uncertain.. Explain whether each of the following statements is true,

Question

True/false/uncertain.. Explain whether each of the following statements is true, false, or could go either way depending on the circumstances. Explanation determines grade. Start your answer by selecting one of the three statements – “True”, “False”, or “Uncertain” and then provide arguments to justify your selection.

When the current generation of workers saving for their retirement retires, it is likely we will see even lower real interest rates than today because on average their consumption will be low.

Elevated priceearnings ratios in the stock markets are related to the saving glut phenomenon described by Ben Bernanke in 2005.

Explanation / Answer

False, because when one generation of population retires, other takes it's place and consumption just rises, never falls on permanent levels.

False, as saving glut phenomena deals with he situation where desired savings exceeds desired investment, and stick market is all about investment.

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