15. When we say that income is a flow variable, we mean that: 1. income is measured at a given point in time 2. income is very liquid 3. income is measured over a period of time 4. income is another word for money

25. Which of the following statements is true? 1. Wealth increases when C exceeds income 2. Wealth is a flow variable

3. Wealth increases when income exceeds C 4. A and B are both true

26. The initial seller of a bond is considered to be the: 1. lender 2. lender or the borrower, depending on how the funds are used 3. borrower 4. lender or the borrower, depending whether interest rates are rising or falling

29. When you borrow from a bank to buy a new car, you are participating in the process of: 1. Direct finance 2. Indirect finance 3. primary finance 4. principal finance

30. Which of the following statements is true? 1. inflation makes everyone worse off since they have to pay higher prices 2. deflation makes everyone worse off since incomes are falling 3. inflation redistributes income 4. deflation harms people who are on fixed income