If the income line lies above the consumption curve, then whatever the level of national income, saving
a. equals consumption
b. equals income
c. is less than zero
d. is equal to zero
e. is greater than zero
E
You might also like to view...
What are the major reasons a multinational corporation would engage in Foreign Direct Investment (FDI)?
What will be an ideal response?
Which of the following countries has had the more successful transition?
a. Poland b. Russia c. Kazakstan d. Georgia e. Kyrgystan
When the price level rises
a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes. b) the interest rate falls because people will want to hold more money and so sell bonds. c) the interest falls because people will want to hold less money and so buy more bonds. d) firms will spend more on new business buildings and business equipment and households will want to spend more on building new homes.
Which of the following is an example of explicit costs of production on a dairy farm?
a. payments made for cattle feed and veterinary services b. payments received from customers for milk and cheese c. amounts lost by not leasing out the farm’s grazing fields d. the salary the farmer could have earned working in town instead