An Agency Relationship Exists When One or More Persons Hire

question 8

True/False

An agency relationship exists when one or more persons hire another person to perform some service but withhold decision-making authority from that person.

---

Definitions:

Marginal Propensity To Save

The fraction of an increase in income that is saved rather than spent on consumption.

Recessionary Periods

Times characterized by a significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

National Income

The total amount of money earned within a country from the production of goods and services over a specific period of time.