With the Expenditures Programs and the Tax System Shown in the Above

question 233

Multiple Choice

With the expenditures programs and the tax system shown in the above diagram:

• A)the public budget will be expansionary at all GDP levels above K, and contractionary at all GDP levels below K.
• B)the public budget will be a destabilizing force at all levels of GDP.
• C)deficits will be realized at income levels below K, and surpluses above K.
• D)deficits will be realized at income levels below H, and surpluses above H.

Differentiate between the types of banking relationships and their legal implications.

Identify the legal framework governing the use of checks, including the rights and obligations of parties involved.

Explain the principles of electronic funds transfers (EFT) including the types of EFT systems.

Comprehend consumer rights and liabilities under the Electronic Funds Transfer Act (EFTA).

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Definitions:

Price Level

The aggregate average price of goods and services in the economy at present.

Rate of Interest

The interest segment of a loan charged to the borrower, frequently expressed in terms of an annual percentage of the current loan balance.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use or investment.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.