When saving leaks out of the circular flow of income and spending,
A. total income necessarily falls.
B. it leaks out of the financial system.
C. it flows to borrowers.
D. it increases the size of the spending flow.
Answer: C
Economics
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In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars. Sue and Fred can gain from trade if Sue changes the ________ and Fred changes the ________
A) tires; oil B) oil; oil C) oil; tires D) tires; tires
Economics
A unit tax has an advantage over an ad valorem tax in situations when _____
a. inflation is high b. it is easy to estimate the value of the good being taxed c. it is difficult to estimate the value of the good being taxed d. inflation is low
Economics