Dissaving occurs when households spend more on consumption than they receive as disposable income.
Answer the following statement true (T) or false (F)
True
When a household consumes more than its income, saving will be negative.
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Are all points inside the production possibilities frontier unattainable?
What will be an ideal response?
Explain how to calculate the slope of a non-linear function. What does the slope measure?
What will be an ideal response?
Which of the following is a reason why a bank may hold excess reserves?
a. It earns more interest on reserves than on loans. b. It is required to do so. c. It may want flexibility to increase its loans if interest rates rise in the near future. d. Banks often expect a drop in the required reserve ratio. e. Banks often expect a rise in the required reserve ratio.
The GDP includes government consumption such as
A. Social Security benefits. B. Medicare and Medicaid benefits. C. office products. D. transfer payments