Intended investment is
a. always greater at a national income of $800 billion than at a national income of $500 billion
b. always smaller at a national income of $500 billion than at a national income of $800 billion
c. directly proportional to consumption spending
d. independent of the level of national income
e. always equal to intended saving
D
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What is the maximum amount a bank can lend?
A) its total reserves B) its excess reserves C) its excess reserves divided by the required reserve ratio D) the value of its checkable deposits times the required reserve ratio
When a person holds money, they give up
A) the pleasure associated with spending money. B) the pleasure associated with saving money. C) the interest that could have been earned if the money had been changed into an interest-bearing asset. D) nothing, since the person can always use the money to buy goods or services or interest-bearing assets.
Because of economic scarcity
a. there are not enough jobs for everyone b. people are afraid to become entrepreneurs c. the government interferes in the economy d. businesses cannot obtain the resources they need e. people and organizations have to allocate resources carefully
Macroeconomists define consumption as
A) purchases by the business sector. B) wearing away and breakdown of capital goods. C) the difference between imports and exports. D) purchases by the household sector.