Author Question: What is capital income? What will be an ideal response?[br][br][b][color=red]Question ... (Read 57 times)

waynest · **on:** Jun 29, 2018

What is capital income?

What will be an ideal response?

Question 2

Refer to Figure 15-10. In the figure above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?

A) an open market sale of Treasury bills B) an open market purchase of Treasury bills
C) an increase in income taxes D) a decrease in the required reserve ratio

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

Answer to Question 1

Capital income is income earned on savings that have been put to use through financial capital markets. Interest is the most common form of capital income.

Answer to Question 2

A