What condition must be met in order for total spending to equal total output?
a. The sum of saving and government purchases must equal the sum of planned investment and net taxes.
b. The sum of saving and net taxes must equal the sum of planned investment and government purchases.
c. The sum of saving and planned investment must equal the sum of government purchases and net taxes.
d. Saving must equal net taxes.
e. The sum of saving and net taxes must equal planned investment minus government purchases.
B
You might also like to view...
In recent years, the Federal Reserve has conducted policy by setting a target for
a. bank reserves. b. the monetary growth rate. c. the exchange rate. d. the federal funds rate.
In the capital market, the rental price is what a:
A. producer pays to use a factor of production for a certain period or task. B. producer pays to gain permanent ownership of a factor of production. C. consumer pays to use labor or land services for a certain period or task. D. consumer pays to gain permanent ownership of a factor of production.