For an Economy as a Whole,income Must Equal Expenditure Because

question 22

Multiple Choice

For an economy as a whole,income must equal expenditure because

• A)the number of firms is equal to the number of households in an economy.
• B)individuals can only spend what they earn each period.
• C)every dollar of spending by some buyer is a dollar of income for some seller.
• D)every dollar of saving by some consumer is a dollar of spending by some other consumer.

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Definitions:

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The total amount of money being transferred in and out of a business, especially as affecting liquidity.

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