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.
c
Economics
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Which of the following is included in the M1 money supply?
A) Bonds B) Credit cards C) Gold D) Deposits in checking accounts E) All of the above.
Economics
The most fundamental proposition of modern portfolio theory is that
A) investment risk is reduced by investing in on security. B) the smaller the standard deviation is, the larger is the risk of a portfolio. C) even though an asset is risky in isolation, when combined with other assets the risk of the portfolio is less, perhaps even zero. D) uncertain outcomes make for risky investments.
Economics