Firms can acquire access to savings directly ________.
A) by issuing securities
B) through the payment of taxes to the federal government
C) by borrowing from banks
D) through the depositing of funds in depository institutions
Question 2
According to the life-cycle hypothesis, as consumers get older ________.
A) the marginal propensity to consume out of wealth and income rise
B) the marginal propensity to consume out of wealth falls and the marginal propensity to consume out of income rises
C) the marginal propensity to consume out of wealth rises and the marginal propensity to consume out of income falls
D) the marginal propensity to consume out of wealth and income fall
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