Domestic savings:
A. comes from private households spending less than they earn.
B. is equal to domestic income minus consumption spending.
C. occurs when government revenues exceed noncapital expenditures.
D. All of these are true.
Answer: D
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
In the money market, an excess supply of money will:
A) increase the demand for bonds, increase bond prices, and decrease interest rates. B) increase the demand for bonds, decrease bond prices, and decrease interest rates. C) decrease the demand for bonds, increase bonds prices, and increase interest rates. D) decrease the demand for bonds, decrease bond prices, and increase interest rates.
What happens to net capital outflow as the real interest rate falls? Explain your answer
Answer the next question on the basis of the following information: Three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per unit prices of these three goods are A = $2, B = $3, and C = $1.If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is ________.
A. $160 B. $115 C. $45 D. $110