[14] Holding all else equal, you would expect the level of economic activity to increase if...
[14] Holding all else equal, you would expect the level of economic activity to increase if household:
A) saving were less than taxes.
B) saving plus taxes were more than earned income.
C) saving plus taxes were less than spending from borrowed funds and transfer payments.
D) all of these answers are correct.
[15] Considering only the household sector, an economy will:
A) expand as spending from transfers and borrowing, and savings and taxes increase.
B) contract as spending from transfers and borrowing, and savings and taxes increase.
C) expand as spending from transfers and borrowing increases, and contract as savings and taxes increase.
D) contract as spending from transfers and borrowing increases, and expand as savings and taxes increase.
Homework Answers
14] Holding all else equal, you would expect the level of economic activity to increase if household:
c) saving plus taxes were less than spending from borrowed funds and transfer payments.
15] Considering only the household sector, an economy will:
c) expand as spending from transfers and borrowing increases, and contract as savings and taxes increase.
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[14] Holding all else equal, you would expect the level of
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