When an individual spends more than her/his disposable income, this person is
A) saving.
B) investing.
C) dissaving.
D) unemployed.
Answer: C) dissaving.
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Because the natural rate of unemployment is not known precisely, policymakers who use it as a guide for policy must be
A) less aggressive with policy changes than they would be if they knew the value of the natural rate. B) more aggressive with policy changes than they would be if they knew the value of the natural rate. C) ready to change policy more quickly. D) aware of other data.
We can use a per-worker production function in the Malthusian model because
A) there is a representative worker. B) firms are competitive. C) there is a steady state. D) the production function has constant returns to scale.
Alphabet Bank has a required reserve ratio of 12 percent. If it receives a deposit of $210,000, how much of it must it keep in reserves?
a. $210,000 b. $25,200 c. $184,800 d. $17,500
If the cross-elasticity of demand for two goods is positive, this means that the goods are:
A. normal goods. B. inferior goods. C. substitutes. D. complements.