Saving is the portion of
A.
investment that is spent on machinery.
B.
disposable income that is consumed.
C.
disposable income that is not consumed.
D.
stock of consumption.
Which of the following statements best reflects the relationship between saving and
savings?
A.
Saving and savings are both stock variables.
B.
Saving and savings are both flow variables.
C.
Saving is the total amount not consumed whereas savings refers to the amount placed into a savings account.
D.
Saving is a flow variable; savings is a stock variable.
Saving is a portion of disposable income that is not consumed and value of savings would be disposable income minus all the expenditures and therefore in this regard
(C) is the answer to this question
Because it is not a part of disposable income and not related to consumption
(A,B,D) are wrong.
Saving is a flow variable because it is a total amount in a particular period of time measured while savings is a stock variable because it is an accumulation
Therefore (D) is the answer
Because savings account and savings are totally different and saving is a flow variable while savings is a stock variable
(A,B,C) are wrong
Saving is the portion of A. investment that is spent on machinery. B. disposable income that...
National saving refers to: disposable income minus consumption. income minus consumption minus government purchases. income minus investment. taxes minus government spending.
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of national saving to decrease. b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. O d. increase and the flow of investment to increase. O e. increase and the flow of...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of investment to decrease. о b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. d. increase and the flow of investment to increase. о e. increase and the flow of national...
Is each of the following sets of variables positively related or negatively related? ANSWER OPTIONS ARE: POSITIVELY RELATED OR NEGATIVELY RELATED a. The fraction of disposable income spent on consumption and the fraction of disposable income saved: b. The value of wealth and the amount of consumption spending: c. The interest rate and the fraction of disposable income saved: d. The interest rate and the fraction of disposable income consumed: e. Expected future income and consumption spending: f. Current income...
When Monica spends more than her disposable income, Monica is O A. unemployed. O B. dissaving. O C. investing. D. saving. Question Help According to the figure at right, planned consumption and income are equal at an income level of 45 Y1 Y2YoYs Real Disposable Income (S per year) -Ques According to the figure at right, the average propensity to save (APS) is zero at point O A. F O B. D OC. J OD. I 45 Y1 Y2 Y....
4) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (1) from the following information (all variables are in billions of dollars). National income Disposable income Consumption Budget Deficit Net Exports Y = 5,200 YD = 4,400 C = 4,100 BD = 150 NX = 110
4. Saving and net flows of capital and goods In a dosed economy. saving and gross investment must be equal, but this is not the case pe economy. In the following problem you explore how saving and gros investment are connected to the international flow of capital and good in an econom. Bording to the relationship between these various components of an economy, you will be asked to recall some relationship between agregate variables that will be useful in your...
3. National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. C+I+G+ (X-IM) = DI + NT Which of the following best characterizes the above identity? O National income must equal domestic product. National income must equal the total amount of leakages from the nation's flow of income and...