National saving
a. is the total income in the economy that remains after paying for consumption.
b. is the total income in the economy that remains after paying for consumption and government purchases.
c. is always greater than investment for a closed economy.
d. is equal to private saving minus public saving.
b
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When someone in a country buys an asset abroad, the transaction is recorded
A) in the current account. B) in the official settlements balance. C) in the financial account as a capital inflow. D) in the financial account as a capital outflow.
The phenomenon of crowding-out suggests that the positive impact of budget deficits on economic activity are reduced by ________
A) the impact produced by government spending on the environment B) an increase in national savings C) the interest rate effects associated with federal deficits D) the increase in pork barrel projects deficit spending entails
When the marginal-cost curve lies above the average-total-cost curve, the average-total-cost curve slopes up and the average-variable-cost curve slopes down
a. True b. False Indicate whether the statement is true or false
According to the absolute income hypothesis, the marginal propensity to consume
a. decreases as national income increases b. increases as national income increases c. is equal to one d. is constant as national income increases e. is equal to the marginal propensity to save