One way to view equilibrium in the simple Keynesian model without government spending and taxes is that:
A) saving equals planned investment.
B) saving equals planned expenditures.
C) saving equals planned autonomous spending.
D) None of the above.
A
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Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
A) commodity markets. B) fund-available markets. C) derivative exchange markets. D) financial markets.
If an individual moves money from a savings deposit account to a money market deposit account
A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases.
Product-specific services are most likely to be valuable for which of the following goods?
A) a box of 50 legal notepads B) a box of paper clips C) a stapler D) an office copying machine
Deflation exists whenever: a. the overall price level falls
b. the overall price level rises. c. the economy experiences a contraction. d. the price of a good decreases.