Which of the Following Is FALSE About Private Savings and Government

question 12

Multiple Choice

Which of the following is FALSE about private savings and government savings?

• A) S^P = Y - T - C
• B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment.
• C) Total savings (
• S) = S^P +
• D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions.
• E) None of the above; all statements are true.

Learn how to calculate the total purchased cost in an outsourcing decision model.

Understand the basic financial statements and their components.

Comprehend the concept of risk and return in investments.

Identify the calculation and interpretation of return on assets.

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Definitions:

Treasury Stock

Shares that were issued by a company and then repurchased, not considered when calculating dividends or earnings per share.

Par Value

A nominal or face value assigned to a security or stock, which may bear no relation to its market value.

Paid-In Capital

The sum of funds that a corporation has obtained from investors in return for stock shares.

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.