Describe the saving schedule.
What will be an ideal response?
Saving is the difference between disposable income and consumption spending. The saving schedule shows a direct relationship between saving and disposable income. Graphically, it is depicted with saving on the vertical axis and disposable income measured on the horizontal axis. At very low income levels, dis serving is believed to occur and saving increases proportionally as income rises.
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Refer to the Article Summary. The article discusses income inequality, and for some people this means a more equitable distribution of income is needed in the economy. Would an equitable distribution of income necessarily be the most efficient distribution of income?
A) No, it is impossible to have an economically efficient distribution which is also an equitable distribution. B) No, an economically efficient distribution of income would not necessarily be equitable. C) Yes, in order for the distribution to be equitable, it must also be efficient. D) Yes, equitable and efficient are two different words which have the same definition.
"Subordinated" debt is one form of __________ debt
A) mezzanine B) uncollateralized C) zero-coupon D) risk-free
Tariffs raise the price of imported goods, but quotas rarely do
Indicate whether the statement is true or false
Refer to the information provided in Table 24.7 below to answer the question(s) that follow.
Table 24.7All Numbers are in $ Million
Refer to Table 24.7. The government spending multiplier in this economy is
A. 2. B. 4. C. 5. D. 10.