The private sector balance is saving ________ investment. If saving exceeds investment, a private sector ________ is lent to other sections. If investment exceeds saving, borrowing from other sectors finances a private sector ________
A) minus; deficit; surplus
B) plus; surplus; deficit
C) minus; surplus; deficit
D) plus; deficit; deficit
E) minus; surplus; surplus
C
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A commercial bank puts the funds it receives from various sources into
A) securities, cash assets and loans. B) loans, notes and coins in the bank's vault and deposits. C) reserves, deposits and loans. D) securities, cash assets and deposits.
If the price of gasoline increases and the price of food remains the same, then real income measured in terms of
A) gasoline increases. B) gasoline decreases. C) food increases. D) food decreases.
The producer price index tracks the prices firms receive for goods and services at all stages of production
Indicate whether the statement is true or false
According to the simple circular flow concept, whenever planned investment is less than planned saving
a. total output and/or prices rise. b. total output and/or prices fall. c. prices fall and total output rises. d. prices rise and total output falls.