If disposable income and consumption in an economy are equal,
A. consumers must be incurring debt.
B. consumption must also be equal to saving.
C. household saving must be zero.
D. None of these choices are true.
C. household saving must be zero.
You might also like to view...
In the perfectly competitive model, all firms are assumed to be producing: a. products that are heavily advertised. b. differentiated products
c. identical products. d. complementary products.
In the Easy Step Interview, you must identify:
a. Type of Industry b. Company name c. Company address d. All of these
Assume that the required reserve ratio is 20 percent. If the Federal Reserve buys $80 million in government securities from the general public, then the money supply will immediately:
A. Increase by $0 with this transaction, and the maximum money-lending potential of the commercial banking system will increase by $400 million B. Increase by $0 with this transaction, but the maximum money-lending potential of the commercial banking system will increase by $320 million C. Increase by $80 million with this transaction, and the maximum money-lending potential of the commercial banking system will increase by another $400 million D. Increase by $80 million with this transaction, and the maximum money-lending potential of the commercial banking system will increase by another $320 million
If the income effect of a wage increase equals the substitution effect, the labor supply curve is horizontal at the equilibrium wage
Indicate whether the statement is true or false