Unsaved economists view investment spending

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Reference no: EM13685259

1. A requirement to have a yearly balanced federal budget would mean:

1. That actual GDP would equal potential GDP every year.

2. That there would be no more recessionary gaps or inflationary gaps.

3. That total household disposable income would be the same every year.

4. That the role of taxes and transfers as automatic stabilizers would be undermined.

2. Unsaved Economists view investment spending as which of the following:

1. Purchase of bonds.

2. Purchase of stocks.

3. Mutual fund investing.

4. Spending on physical capital.

Reference no: EM13685259

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