According to Keynes, what households plan to save
A) always equals what firms plan to invest.
B) sometimes equals what firms plan to invest.
C) is always greater than what firms plan to invest.
D) is always less than what firms plan to invest.
B
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Sometimes wages are set above the equilibrium level when
a. garbage collectors earn higher wages than secretaries due to compensating differentials. b. accountants earn more than dental technicians due to higher educational requirements. c. movie superstars earn more than talented plumbers. d. unions negotiate higher wages by threatening to strike.
Since Social Security is a pay-as-you-go program, the funds for the people retiring today
A) come from those of us working today and in the future. B) come from the Federal Reserve. C) come from import taxes. D) come from foreign sales of gold.