The part of disposable income not spent on current consumption is
A. Dissaving.
B. Saving.
C. Social Security taxes.
D. Investment.
Answer: B
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Which of the following statements is true?
A) The type of institutions in a nation is considered a proximate cause of prosperity. B) Institutions determine the degree to which society accumulates factors of production and adopts new technology. C) Societal religious beliefs and existing social norms are key proximate causes of economic prosperity. D) Cultural and geographical factors that affect economic prosperity can be changed faster than the institutional factors that affect it.
What characteristic is shared by both sole proprietorships and partnerships?
a. They both tend to be large businesses. b. They both face unlimited liability. c. They both have just one owner. d. They both face limited liability. e. They both have just two owners.
A decrease in supply _____ price and _____ the quantity sold.
Fill in the blank(s) with the appropriate word(s).
If the reserve ratio is 5 percent, banks do not hold excess reserves, and people do not hold currency, then when the Fed purchases $20 million worth of government bonds, bank reserves
a. increase by $20 million and the money supply eventually increases by $400 million. b. decrease by $20 million and the money supply eventually decreases by $400 million. c. increase by $20 million and the money supply eventually increases by $100 million. d. decrease by $20 million and the money supply eventually decreases by $100 million.