Author Question: Carefully define the two categories of saving in the economy. What will be an ideal ... (Read 91 times)

Awilson837 · **on:** Jun 29, 2018

Carefully define the two categories of saving in the economy.

What will be an ideal response?

Question 2

Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in

A) business taxes. B) oil prices.
C) investment spending. D) income tax rates.

anyusername12131 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

There are two categories of saving in the economy: private saving by households and public saving by the government. Private saving is what is left of income after consumption expenditures and income taxes. Public saving is the amount of tax revenue that the government collects minus government expenditures and transfer payments.

Answer to Question 2

C