The Table Below Shows Aggregate Values for a Hypothetical Economy

question 51

Multiple Choice

The table below shows aggregate values for a hypothetical economy.Suppose that this economy has real GDP equal to potential output.
TABLE 25-3
-Refer to Table 25-3.What is the level of private saving for this economy?

• A)$50
• B)$100
• C)$500
• D)$2000
• E)$3000

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Definitions:

Concentration Accounts

A single account used by companies to aggregate funds from different accounts, simplifying cash management.

Lockboxes

A banking service where payments are sent to a special post office box rather than to the company's offices, to speed up transaction processing.

Disbursement Float

The time lag between when a payment is made by writing a check and when the funds are actually removed from the payer's account.

Float Costs

The expenses associated with issuing new stocks or bonds, including underwriting, legal, and registration fees.