If a household with an income of $125 consumes $88 and invests $26, its financial surplus available for lending to the financial system equals $37.

Name: If a household with an income of $125 consumes $88 and invests $26, its financial surplus available for lending to the financial system equals $37.
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Quizplus · Accepted Answer

The financial surplus is calculated as income minus consumption and investment. Here, $125 - $88 - $26 = $11, not $37.

If a Household with an Income of $125 Consumes $88