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Savers Surplus Spending Units (SSU) provide funds with the expectation of earning profit. *
True or False?
Savers Surplus Spending Units (SSU) provide funds with the expectation of earning profit. - TRUE
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Solved in 2 steps
- Marginal propensity to save is: A total saving divided by total income. B the change in total saving divided by the change in total income. C total saving when total income is zero. D total saving that is based on expected future income.In financial markets, savers can directly provide funds to borrowers. Select one: a. Fales. b. True.To understand the paradox of thrift, it is necessary to assume that investment is unrelated to income TRUE FALSE
- Of means-tested programs and IRA’s, which lower the rate of return on saving? a. Both means-tested programs and IRA's. b. Means-tested programs, but not IRA's. c. IRA's but not means-tested programs. d. Neither means-tested program, or IRA's.Fill in the blanks with the options provided. (1) When saving is negative, the excess of consumption over disposable income must be financed by _____________________. Economic Production is an activity that is (2) _________________________. 1a Acquiring more assets 1b Incurring Liabilities 1c Reducing capital transfers 2a carried out under the control of an institutional unit 2b the value resulting from gross output less intermediate costs.Explain the three main important properties of the saving function?
- The tax cuts of 2008 and 2009 reduced the disposable income of U.S. consumers. True or FalseIf personal taxes are cut temporarily, the resulting a. increase in personal saving would be larger than if they were cut permanently. b. decrease in personal saving would be smaller than if they were cut permanently. c. decrease in personal saving would be larger than if they were cut permanently. d. increase in personal saving would be smaller than if they were cut permanently GIVE explanation for the answerThe most likely effect of an increase in the supply of loanabke funds is which of the following? I. Increase Interest Rates. II. Decrease Interest Rates. III. Increase Investment. IV. Decrease Investment. a. I only. b. II only. c. III only. d. I and IV only. e. II and III only.
- The interest rate is the opportunity cost A. of holding money. B. of investing in stocks. C. of using credit cards. D. of investing in Treasury securities.A decrease in the interest rate would a. shift investment demand left b. lead to a downward movement along the savings supply curve c. shift saving supply left d. shift investment demand rightTaking out a mortgage to buy a condo, buying a mutual fund, and building a new factory are all examples of investment. True or False?