National income accounts assist
A. Economic policy makers in formulating policies and evaluating performance.
B. Analysts in measuring the performance of the stock market.
C. Market investors in making more profitable investments.
D. Individuals in maximizing their incomes.
Answer: A
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Assume that the required reserve ratio is 10 percent. A bank has deposits of $1,000,000 and cash of $500,000 in the Fed. The bank has demand deposits equal to $1,500,000. Given this information, the bank has excess reserves of
A) $850,000. B) $350,000. C) $1,350,000. D) None of the above.
As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become
A) less wealthy and they buy less. B) more wealthy and they buy more. C) less wealthy and they buy more. D) more wealthy and they buy less.