Savings are generated whenever:
A. prices are rising.
B. current spending exceeds current income.
C. current income exceeds current spending.
D. real GDP exceeds nominal GDP.
Answer: C
Economics
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Assuming all else equal, a rise in the rate of interest:
A) results in a fall in the cost of borrowing. B) results in a fall in the amount of interest accumulated on a loan. C) results in a fall in the quantity of credit demanded. D) results in an increase in the number of potential debtors.
Economics
How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?
What will be an ideal response?
Economics