In a Simple Macro Model with No Government and No

question 91

Multiple Choice

In a simple macro model with no government and no foreign trade, the equilibrium level of national income is the level of income at which

• A)aggregate desired expenditure is greater than actual national income.
• B)saving equals consumer spending.
• C)aggregate desired expenditure equals consumer spending.
• D)saving equals income.
• E)aggregate desired expenditure equals actual national income.

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Definitions:

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.

RRSP

A registered retirement savings plan, a tax-advantaged account designed to help Canadians save for retirement.

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.