In the short run,
a. spending depends on income and income depends on spending
b. spending depends on income, but income does not depend on spending
c. income depends on spending, but spending does not depend on income
d. spending and income are independent of one another
e. spending is the only determinant of how much income an economy will produce
A
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During the 1960s, 1970s, and early 1980s, traditional bank profitability declined because of
A) financial innovation that increased competition from new financial institutions. B) a decrease in interest rates to fight the inflation problem. C) a decrease in deposit insurance. D) increased regulation that prohibited banks from making risky real estate loans.
Scarcity is a concept that implies that choices must be made
a. True b. False Indicate whether the statement is true or false