When markets are more liquid, people are _______ willing to save and the level of investment is _______.
A) more; higher
B) less; higher
C) more; lower
D) less; lower

Question

Quizplus · Accepted Answer

When markets are more liquid, it means that assets can be easily bought and sold without significant price changes. This creates more confidence in investors, making them more willing to save and invest because they can convert their assets into cash easily. Therefore, the level of investment is higher.

When Markets Are More Liquid, People Are _______ Willing to Save