National saving is done by:
A. only businesses.
B. only households.
C. households, businesses, and governments.
D. only governments.
Answer: C
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A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 2nd movie?
A. $1 B. $8 C. $4 D. $2
A merger between two firms that have a supplier-purchaser relationship is:
a. horizontal. b. vertical. c. conglomerate. d. illegal. e. inefficient.
If the federal government runs a budget deficit, and the budget deficit as a percent of GDP is equal to the growth rate of real output, the
a. national debt will decrease as a share of GDP. b. national debt will remain a constant share of GDP. c. national debt will increase as a share of GDP. d. size of the national debt (in dollar value) will decline.
The discount rate
A) is determined by markets forces of demand and supply in the market for bank reserves. B) is set by the Board of Governors. C) is determined by investment banks. D) is determined by market forces of demand and supply in the credit market.