The banking system can lend the sum of its excess reserves because

Without money, the process of acquiring goods and services would be much more efficient.

Which of the following gave the U.S. federal government the power to tax income?

If the economy is in a recession,

The four components of aggregate spending are consumption, saving, imports, and taxes.

Equilibrium occurs when the aggregate demand curve intersects the aggregate supply curve.

Disposable Income (Billions of dollars per year)Total Consumption (Billions of dollars per year)$ 0$ 50200210 Refer to the table. What is the marginal propensity to consume?

A decline in total real output for two or more consecutive quarters is called

If the availability of credit increases, then

Investment represents