If a “conservative” wanted to increase aggregate demand, which of the following would he or she tend to favor?
A. An increase in government spending, because it has a larger multiplier than tax changes.
B. A decrease in transfer payments, because it keeps the public sector small.
C. An increase in transfer payments, because it has a larger multiplier than tax changes.
D. A decrease in taxes, because it makes the public sector smaller.
Answer: D
Economics
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Define savings rate. If the aggregate savings in an economy is $10,000 and the aggregate income in the economy is $70,000, what is the savings rate in the economy?
What will be an ideal response?
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If a bank borrows funds for three years, the borrowing will be classified as:
A) demand deposits. B) short-term borrowing. C) stockholders' equity. D) long-term debt.
Economics