The above table gives assets and deposits for a (small) bank. The bank's deposits that are part of M2 are equal to

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending

A) the economy will benefit in the short run and benefit by an even greater amount in the long run. B) this will have a major negative impact on the economy in both the short run and in the long run. C) this may benefit the economy in the long run, but could be counterproductive in the short run. D) this may benefit the economy in the short run, but not in the long run.

After Joyce and Larry purchased their first house, they made additional home improvements in response to increases in income. After a while, their income rose so much that they could afford a larger home

Once they realized they would be moving, they reduced the amount of home improvements. Their Engel curve for home improvements on their current home is A) negatively sloped. B) flat. C) positively sloped. D) backward bending.