Saving Is a Leakage in the Sense That

question 91

Multiple Choice

Saving is a leakage in the sense that

• A)saving is lost to the economy and ultimately leads to stagnation.
• B)the financial system often makes negative profits.
• C)it often accompanies a trade deficit.
• D)consumers spend less than their total income.

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Definitions:

Federal Government

The national government of a federal state, which shares sovereignty with its subdivisions and has powers distinct from them.

Poverty Rate

The percentage of the population living below the national poverty line, which measures the minimum level of income considered necessary to achieve an adequate standard of living.

Business Cycle

Increases and decreases in the level of business activity that occur at irregular intervals and last for varying lengths of time.

War On Poverty

A set of government policies and programs initiated in the 1960s in the United States aimed at reducing poverty and improving living conditions for the impoverished.