When Current Savings of an Economic Unit Exceed Its Direct

question 82

Multiple Choice

When current savings of an economic unit exceed its direct investment in real assets,

• A)more funds are needed by the economic unit
• B)funds can be made available to a savings deficit unit
• C)interest rates will rise
• The firm has undistributed profits

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Definitions:

Spinal Cord

A major part of the central nervous system which conducts sensory and motor nerve impulses to and from the brain.

Sensation

Processing of sensory stimuli that involves detection of nerve impulses by the cerebral cortex of the brain.

Voluntary Control

The ability to consciously control bodily movements, as opposed to involuntary movements which occur without conscious choice.

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.