Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,000, consumption equals 7,500, and government purchases equal 2,000 . What is national saving?

Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must:

A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates.

When a new depositor opens a checking account at the First National Bank, the bank's assets ________ and its liabilities ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease