Gail Nelson Begins Her First Job After Graduating from College

question 75

Multiple Choice

Gail Nelson begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Gail correct?

• A) Yes, by putting this money into a savings account, only she has access to the funds and they are no longer available to the circular flow.
• B) No, even though she has saved this money, the bank will in turn invest the money back into the circular flow.
• C) Yes, only direct investments into companies, such as purchasing ownership shares of that company, will put her savings back into the circular flow.
• D) Yes, the circular flow focuses on businesses and government, and therefore Gail's savings have no impact on the circular flow.
• E) No, because she earned this money from a company and because she paid taxes on it, it is always considered part of the flow.

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Definitions:

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The 32nd President of the United States (1933-1945), he led the country through the Great Depression and World War II, and is known for his New Deal policy.