If National Saving in a Closed Economy Is Greater Than

question 14

Multiple Choice

If national saving in a closed economy is greater than zero, which of the following must be true?

• A) Either public saving or private saving must be greater than zero.
• B) Investment is positive.
• C) Y - C - G > 0.
• D) All of the above are correct.

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Definitions:

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially relating to behavioral decisions and attitude change.

Fundamental Attribution Error

The tendency for people to over-emphasize dispositional or personality-based explanations for behaviors observed in others while under-emphasizing situational explanations.

Central Persuasion

A method of influencing that relies on direct, logical, and thought-provoking messages aiming at the central route of the cognitive process.

Peripheral Route Persuasion

A method of persuasion that influences individuals indirectly, by focusing on cues other than the direct message, such as the attractiveness or credibility of the source.