Which of the following statements is TRUE?
A) consumption + saving = disposable income
B) consumption + saving = personal income
C) consumption - investment = disposable income
D) consumption - saving = personal income
A
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Nominal GDP is greater than GDP because of the effects of inflation as measured by the GDP chain price index
a. True b. False Indicate whether the statement is true or false
If banks are fully loaned up, have no excess reserves, and the required reserve ratio is raised, the amount that banks can lend is:
a. reduced and the money supply contracts. b. reduced and the money supply expands. c. reduced and there is no change in the money supply. d. increased and the money supply expands. e. increased and the money supply contracts.
In the perfectly competitive model, all firms are assumed to be producing: a. products that are heavily advertised. b. differentiated products
c. identical products. d. complementary products.
As one moves down a straight-line demand curve away from the vertical axis, demand becomes less elastic and then inelastic
a. True b. False Indicate whether the statement is true or false