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Author Question: Explain the determinants of aggregate private spending. What will be an ideal ... (Read 81 times)

skymedlock

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on: Jun 30, 2018
Explain the determinants of aggregate private spending.
 
  What will be an ideal response?

Question 2

Which of the following statements is false?
 
  A) A bank's assets are its uses of funds.
  B) A bank issues liabilities to acquire funds.
  C) The bank's assets provide the bank with income.
  D) Bank capital is recorded as an asset on the bank balance sheet.


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durant1234

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Aggregate private spending, A, equals C plus I. So, A is a function of current income, future expected income, current taxes, future expected taxes, current interest rates, and future expected interest rates.

Answer to Question 2

D


skymedlock

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

yeungji

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Reply 3 on: Yesterday
Wow, this really help

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