The more people try to save, the more national income falls and saving, in spite of people's efforts and desire to save more, remains unchanged. This phenomenon is known as the paradox of
a. saving
b. denied investment
c. thrift
d. frustration
e. intentions
C
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Job rationing occurs if
A) the Lucas wedge is positive. B) the minimum wage is set below the equilibrium wage rate. C) an efficiency wage is set below the equilibrium wage rate. D) the real wage rate is pushed above the equilibrium wage rate. E) a union wage is set below the equilibrium wage rate.
Assuming that C = $4,500, I = $1,000, G = $1,200, Exports = $450, Imports = $550, Depreciation = $600, and Indirect Business Taxes = $500 (all in billions of dollars), GDP equals:
A) $5,500 billion. B) $6,000 billion. C) $6,400 billion. D) $6,600 billion.
Most of a bank's operating income results from
A) interest on assets. B) service charges on deposit accounts. C) off-balance-sheet activities. D) fees from standby lines of credit.
Refer to the above figure. A recession is best described as
A. the period between Point A and Point B. B. the upward linear line. C. the period between Point B and Point C. D. none of these.