Disposable income equals
A) income minus saving.
B) income minus both saving and taxes.
C) consumption minus taxes.
D) the sum of consumption and saving.
E) none of the above
D
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Automatic stabilizers include
A) changes in induced taxes and changes in needs-tested spending. B) increases or decreases of tax rates and changes in needs-tested spending. C) changes in induced taxes and changes in discretionary spending. D) changes in discretionary spending and changes in needs-tested spending. E) changes in the federal funds interest rate brought about by Fed policy.
Traders in futures markets settle gains and losses each day
A) by making margin payments. B) by using settlement-by-offset. C) in a process called mark-to-market settlement. D) by making arbitrage payments.
Market failure means that
A. the law of supply and demand has stopped functioning. B. resources are not allocated efficiently. C. the stock market has crashed. D. prices are no longer reliable indicators of how much things cost.
You observe a closed economy that has a government deficit and positive investment. Which of the following is correct?
a. Private and public saving are both positive. b. Private saving is positive; public saving is negative. c. Private saving is negative; public saving is positive. d. Both private saving and public saving are negative.