In the second circular-flow model of Chapter 2, households have two uses for their total income:
A) consumption and investment.
B) consumption and saving.
C) saving and investment.
D) saving and payment of taxes.
E) consumption and payment of taxes.
B
You might also like to view...
Workers whose wages tend to adjust slowly include all of the following EXCEPT
A) those with long-term contracts. B) movie stars, professional athletes, and rock stars. C) union workers. D) unskilled, low wage workers.
The commodity substitution bias is that consumers substitute high-quality goods for low-quality goods
Indicate whether the statement is true or false
Economy with no productivity growth is called the
A) zero-sum society. B) zero-growth society. C) export-led society. D) doomed-to-fail society.
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.