If real disposable income is $300 billion and real consumer expenditures are $250 billion, it can be assumed that

A. the government is spending the difference.
B. the difference is being invested.
C. households are saving the difference.
D. transfer payments make up the difference.


Answer: C

Economics

You might also like to view...

A higher real interest rate ________ saving and ________ consumption spending.

A. increases; decreases B. increases; increases C. does not change; does not change D. decreases; increases

Economics

New reports indicate that eating turnips helps people remain healthy. The news shifts the demand curve for turnips rightward. In response, new farms enter the turnip industry

During the period in which the new farms are entering, the price of a turnip ________ and the economic profit of each existing firm ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls

Economics

Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it offers incentives such as discounts, cash rebates, or lease incentives to customers? How might a car company decide which of these strategies to use

What will be an ideal response?

Economics

The accepted definition of poverty may ______ the number of impoverished persons because it ignores ______.

a. underestimate; income taxes b. underestimate; inflation c. overestimate; noncash benefits d. overestimate; private charities

Economics