If Household Saving Increases by $3 Million, Business Saving Decreases

question 126

Multiple Choice

If household saving increases by $3 million, business saving decreases by $1 million, and the government budget deficit decreases by $2 million, then private saving ______ and public saving ______.

• A) increases; increases
• B) increases; decreases
• C) does not change; increases
• D) does not change; decreases

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Definitions:

Factory Building

A structure purposed for industrial processes including manufacturing, assembling, processing, or handling products.

Rent Expense

The cost incurred for leasing or renting property or equipment for business use.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, rent, and maintenance, that cannot be directly traced to a product.

Materials Not Traceable

Materials used in a production process that cannot be directly linked to a specific product, often considered as part of overhead.