Investment and saving are, respectively:
A. income and wealth.
B. stocks and flows.
C. injections and leakages.
D. leakages and injections.
C. injections and leakages.
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What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice
What will be an ideal response?
Refer to Figure 10.1. If the level of real GDP is initially Y3, firms will ________ production until equilibrium is reached at ________
A) increase; Y3 B) decrease; Y3 C) increase; Y1 D) decrease; Y1
For all goods, the long run demand curve is always more elastic than the short run demand curve
Indicate whether the statement is true or false
If government officials break up a natural monopoly into four smaller firms, then
a. each firm will be unable to maximize profits due to increased competition. b. competition will force firms to produce surplus output, which drives up price. c. the average cost of production will increase. d. consumers will benefit from lower average total costs.