If consumption spending increases by $10 million with no changes in net taxes, then:
A. private saving decreases.
B. public saving increases.
C. private saving increases.
D. public saving decreases.
Answer: A
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According to the New Classical macroeconomic school,
A) active policy intervention is ineffective. B) active policy intervention is undesirable and perverse. C) active policy intervention's benefits exceed its costs. D) active policy intervention's benefits are less than its costs.
A demand curve for The Steel Porcupines' concert tickets would show the:
a. quality of service that customers demand when they buy a ticket. b. number of people who like to attend the concert. c. number of tickets the promoters are willing to sell at each price. d. number of concert tickets that will be purchased at each price.
The balance sheet for a commercial bank shows the bank's:
a. required reserves as assets and excess reserves as liabilities. b. loans as assets and required reserves as liabilities. c. loans as assets and checkable deposits as liabilities. d. checkable deposits as assets and loans as liabilities. e. excess reserves as assets and required reserves as liabilities.
Which of the following accurately describes the difference between D2 and D3?
a. D2 shows an increase in demand; D3 show a decrease in demand.
b. D2 shows a decrease in demand; D3 show an increase in demand.
c. D2 shows an increase in price; D3 shows a decrease in price.
d. D2 shows a decrease in price; D3 show an increase in price.