The amount of consumption in an economy correlates
A. directly with the level of saving.
B. directly with the level of disposable income.
C. directly with the rate of interest.
D. inversely with the level of disposable income.
Answer: B
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By monitoring financial diaries of several of the world's poorest families, economists found that a challenge facing the poor was:
A. they did save any money to pay down debts. B. their income fluctuated a lot, in addition to being low. C. they often did not diversify their savings and had "their eggs all in one basket". D. All of these are true.
An industry characterized by only a few firms in the market is called: a. a monopoly
b. monopolistic competition. c. an oligopoly. d. perfect competition.
Refer to the accompanying figure.
In the figure, which interval represents a business cycle recession?
A. B to D B. B to C C. A to C D. A to B
If a bank has demand deposits of $100 million, how much are its required reserves?
What will be an ideal response?