Scenario 13-1 -Refer to Scenario 13-1

question 261

Multiple Choice

Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l } \text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \\\text { national saving } = \$ 12,000\end{array}$$
-Refer to Scenario 13-1. For this economy, government purchases amount to

• A)$12,000.
• B)$18,000.
• C)$28,000.
• D)$38,000.

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Definitions:

Marketability

The ease with which an asset or security can be sold or bought in the market without affecting its price.

Target Cash Balance

The ideal amount of cash that a business aims to maintain to handle day-to-day operations and contingencies.

Transaction Needs

Describes the demand for money for the purpose of conducting daily transactions, such as purchasing goods and services.

Disbursement Float

The time lag between when a check is written and when it is actually deducted from the payer's account.