In the simplified circular flow diagram, leakage can occur when consumers save some income

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

Beth is participating in an open outcry Dutch auction. Bidding starts at $500, and her maximum williness to pay is $400. The total number of bidders participating in the auction is 4

Her optimal bid strategy is to buy when the price reaches ________. A) $320 B) $300 C) $375 D) $125

Economics

Jennifer consumes both apples and bread. Let Pa be the price of an apple and Pb the price of a loaf of bread. TUa is her total utility from apples and TUb is her total utility from bread

MUa is her marginal utility from apples and MUb is her marginal utility from bread. When Jennifer is in consumer equilibrium A) MUa/TUa = MUb/TUb. B) MUa/Pb = MUb/Pa. C) MUa/Pa = MUb/Pb. D) TUa/Pb = TUb/Pb.

Economics

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s

Indicate whether the statement is true or false

Economics

The persistent budget deficits of recent decades are

What will be an ideal response?

Economics