Answer the following statements true (T) or false (F)

1. National income is equal to wages, rents, interest and profits
2. A complete circular flow of the economy includes both the government sector and the financia
markets.
3. Net exports of goods and services is equal to imports minus exports.
4. If personal income is equal to $3,000 and consumers spend $3,600, the level of savings in the
economy would $600.
5. The slope of the investment function for the economy is called the marginal interest sensitivity of investment.


1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE

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