In the Market Clearing Model, Nominal Saving Is

question 11

Multiple Choice

In the market clearing model, nominal saving is:

• A)the change in money + the change in bonds + the change in the nominal value of capital.
• B)nominal income plus nominal saving.
• C)always zero.
• D)all of the above.

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Definitions:

Progressive

Pertaining to political, social, or economic beliefs favoring or promoting changes, reforms, or innovations.

Personal Taxes

Taxes levied on individuals based on their income, wealth, or property ownership, affecting disposable income and purchasing power.

Personal Income

The total amount of income received by an individual or household from all sources before taxes.

Marginal Tax Rate

The percentage at which the last dollar of income is taxed, indicating how much tax will be paid on an additional dollar of income.