Reduced Funds Available for Investment in Our Economy Could Result

question 10

Multiple Choice

Reduced funds available for investment in our economy could result from

• A)expanded savings by consumers.
• B)higher imports than exports.
• C)reduced spending for consumer goods.
• D)higher exports than imports.
• E)higher opportunity costs.

---

Definitions:

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy.

Consumer Spending

The aggregate spending of families within an economy on goods and services.

45-Degree Line

A reference line in economics, usually on a graph, where all points along the line indicate where the values for the variables on the axes are equal.

Consumer Dollar

The purchasing power of a consumer's money, indicating the quantity of goods and services it can buy.