In a closed economy without the government, income equals: A) ...

[AEWBW]

In a closed economy without the government, income equals:
 
  A) aggregate savings plus aggregate investment. B) aggregate consumption.
  C) aggregate savings. D) aggregate savings plus aggregate consumption.

Question 2

By definition, a direct expenditure offset will occur whenever
 
  A) the interest rate falls.
  B) the interest rate rises.
  C) the government increases spending in an area that competes with the private sector.
  D) the government increases spending for the military.

[kjo;oj]

Answer to Question 1

D

Answer to Question 2

C