In a closed economy with no government, aggregate expenditure is

A) consumption plus investment.

B) saving plus investment.

C) consumption plus the MPC.

D) MPC + MPS.

E) none of the above.

A) consumption plus investment.

Economics

You might also like to view...

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers

This change increased the demand for welders with computer skills and decreased the demand for welders who lack these skills and is an example of when technology is a ________ to a high-skilled job and a ________ to a low-skilled job. A) complement; substitute B) complement; complement C) substitute; complement D) substitute; substitute

Economics

Suppose that the bank has the following balance sheet:

Assets Liabilities Reserves $75,000 Deposits $500,000 Loans $430,000 Net worth $5,000 If the required reserve ratio is 10 percent, what is the maximum the bank can loan out? Suppose the bank makes this loan and the borrower spends the money, which is deposited in a different bank. Show the impact of these transactions on the bank's balance sheet.

Economics