Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What does planned real saving equal when real disposable income equals $6,000?
A) -3,000
B) -1,200
C) 0
D) 7,200
Ans: B) -1,200
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Answer the next question on the basis of the information in the following table. In the table, investment is in billions.(1) Interest Rate(2) Investment (billions of dollars)(3) Investment (billions of dollars)4%$100$8059070680607705086040Suppose the Fed reduces the interest rate from 6% to 4%. As a result of this decrease in the interest rate, using column (2) investment will ________.
A. decrease by $10 billion B. decrease by $20 billion C. increase by $20 billion D. increase by $10 billion
If the Federal Reserve "pegs" the interest rate, then in the IS-LM framework, the LM schedule
a. is vertical. b. becomes horizontal. c. slopes upward to the right. d. slopes downward and the left.
Which of the following will not increase when net taxes decrease?
a. Saving b. Disposable income c. Consumption d. Government expenditure e. GDP
What are the differences between national income, personal income, and disposable personal income?
What will be an ideal response?