What is the relationship between household saving and taxes?
a. taxes = income - consumption - household saving
b. household saving = income + taxes - consumption
c. taxes = income + consumption + household saving
d. household saving = consumption + income - taxes
e. taxes = household saving - income + consumption
A
You might also like to view...
In recent years, a monetary growth rule has fallen out of favor because
A) the close relationship between movements in M1 and movements in real GDP has become weaker. B) it is believed that active monetary policy destabilizes the economy and makes the business cycle worse. C) the growth rate of GDP has been highly unstable. D) the growth rate of M1 has become more stable.
If a firm cannot earn profits in the short run, it will shut down
Indicate whether the statement is true or false
The transactions demand for money is the demand for money by households for:
a. rainy day spending. b. predictable spending purposes. c. liquidity purposes. d. investing purposes.
Sally and Joe recently graduated from college, both majoring in history. Joe took a prestigious job as a legal clerk. Sally took a job as a specialist in fighting forest fires. Both received additional training before entering their jobs. Who will likely earn a higher salary and why?