Saving equals
A. consumption spending minus savings.
B. disposable income minus savings.
C. disposable income minus consumption spending.
D. disposable income minus taxes.
Answer: C
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Use the following graph to answer the next question.
If the price level is initially at P1, then the economy will adjust by:
A. reducing the price level. B. decreasing the GDP produced. C. increasing output produced. D. increasing the total output demanded.
If the U.S. interest rate falls relative to the British interest rate,
a. the U.S. demand for pounds will not change b. the U.S. demand for pounds will decrease c. the U.S. demand for pounds will increase d. there will be a rightward movement along the U.S. demand curve for pounds e. there will be a leftward movement along the U.S. demand curve for pounds
A tax on sellers and an increase in input prices affect the supply curve in the same way
a. True b. False Indicate whether the statement is true or false
The curve in the above graph
A. is a perfectly elastic demand curve.
B. is a perfectly inelastic demand curve.
C. is a very elastic demand curve.
D. is a very inelastic demand curve.