Demand-side economists treat saving as a leakage from potential spending.
Answer the following statement true (T) or false (F)
True
In the circular flow model, saving is siphoned away from spending, though it comes back as investment.
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The principle of diminishing marginal utility says that
A) marginal utility is negative as the quantity of the good consumed increases. B) total utility decreases as the quantity of the good consumed increases. C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases. D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.
(Requires Calculus) In the multiple regression model you estimate the effect on Yi of a unit change in one of the Xi while holding all other regressors constant. This
A) makes little sense, because in the real world all other variables change. B) corresponds to the economic principle of mutatis mutandis. C) leaves the formula for the coefficient in the single explanatory variable case unaffected. D) corresponds to taking a partial derivative in mathematics.
Which of the following are not included in GDP? a. Transfer payments
b. Imports c. Intermediate goods. d. All of the above are excluded from GDP.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.