Households can finance their consumer spending from current
a. income.
b. wealth.
c. debt.
d. income and current wealth.
d
You might also like to view...
Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
A) 0.67. B) 3.33. C) 6.67. D) 30.
Refer to Figure 10.2. Which line represents earnings?
A. a
B. b
C. c
D. h
"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes
What will be an ideal response?
The classical school
A. was the dominant school of economic thought after the Great Depression. B. advocated laissez-faire. C. was mainly concerned with aggregate demand. D. believed that about half of the money saved would be invested.