Private saving is negative when:
A. there is a government budget deficit.
B. after-tax income of households and businesses is greater than consumption expenditures.
C. after-tax income of households and businesses is less than consumption.
D. there is a government budget surplus.
Answer: C
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Which of the following is not a way by which price-discriminating firms can segment a market?
A) on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customizing options B) on basis of the buyer's location, for example requiring out-of-state students to pay higher tuition C) on the basis of time of purchase, for example long-distance calling D) by requiring an advance purchase, for example airline tickets
Economic profit can be calculated as
A) total revenue - explicit costs. B) total revenue - implicit costs. C) total revenue - explicit costs - implicit costs. D) total revenue - fixed costs.
Used car dealerships add nothing to GDP because the cars they sell were already recorded in GDP when they were new
a. True b. False
Because the Fed can react to changes in the economy much more quickly than can Congress, time lags exist for fiscal policy but not for monetary policy.
Answer the following statement true (T) or false (F)