What Condition Must Be Met in Order for Total Spending

question 39

Multiple Choice

What condition must be met in order for total spending to equal total output?

• A) The sum of saving and government purchases must equal the sum of planned investment and net taxes.
• B) The sum of saving and net taxes must equal the sum of planned investment and government purchases.
• C) The sum of saving and planned investment must equal the sum of government purchases and net taxes.
• D) Saving must equal net taxes.
• E) The sum of saving and net taxes must equal planned investment minus government purchases.

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Definitions:

Size Constancy

The tendency to interpret an object as always being the same actual size, regardless of its distance.

Physical Dimensions

The measurable extents of an object or space, such as length, width, height, and depth.

Distance

A measure of the space between two points, often determining how far apart they are.

Texture Gradient

Monocular depth perception cue; the tendency for textured surfaces to appear to become smaller and finer as distance from the viewer increases.