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V. Answer the following questions:

  1. What is individual consumption influenced by?

  2. What phenomenon is known as life-cycle consumption be­havior?

  3. What is the consequence, when desired saving is not equal to desired investment!

A. What is referred to as fiscal policy?

  1. What can individuals do with their income?

  2. Why may aggregate consumption differ from aggregate real output?

  3. What can you say about government expenditures?

VI. Define the terms:

fiscal activities of government aggregate demand

life-cycle consumption behavior aggregate supply

marginal propensity to consume (MPC) saving

VII. Translate into English:

1. (CipMH BMpo6nnK>Tb Tosapw, TOMy tu,o cnontMBaii 6ax<a-KiTb KynMTMi'x. 2. HaKonnHeHHfl cnpMflioTb CTBopeHHio Kanrrany Ta enoHOMMHOMy 3pociaHHio. 3. flepwaBHi BMAaTKM, noflaTKM ra cy6cnflfi' — Me tpiHaHCOBO-6»OA>KeTHa Ai"ibHicTb ypsifly.

4. CyKynHnii nonur 3HMH<yeTbC3, Konn 3pocTaioTb noA^fKH, i 3pocTae, Konn noflaTKM 3MemijytoTbcn. 5. V cynacHifi pMHKOBiii eKOHOMiuj 3MJHH b cyKynMOMy ennycKy cnociepiraioTbcn tac- Tiuje, Hiw 3MJHH b 3arartbHOMy piBHi u,iH. 6. JIk>ah MO>KyTb BHTpanaTM a6o 3aomaA>*<yBaTM CBifi npn6yTOK. 7. Po3BFfi3aHHfi TaKMX nmaHb, sik AepwosHi BHflaTKM, noASTKM Ta cy6cnA»Hane- >KMTb ao cd>epn cpiHaHCOBO-6toA>«eTHoT noni™KK.

VIII. Read and dramatize the following dialogue:

Banker: Mrs. West, I was sorry to hear of your husband's

death. Mrs. West: Thank you. I'm pleased that the bank was named

executor of the estate. S.: - We'll help you in every way we can. We've looked

through the contents of the safe-deposit box and

made an inventory. Everything seems to be in good

order. Mrs. W\: I know so little about my husband's affairs. B.: Our counseling service is for people in just your

position. Mrs. W.: I'm most concerned about my immediate expenses.

168

169

B.: Weil, we're empowered under the terms of the will

to provide you with an allowance until the estate has been probated.

Mrs. W.: Oh, that's fine.

B.: And there are three life insurance policies. You are

the beneficiary in each of them.

Mrs. W.: Yes, I knew about those.

B.: The benefits from these policies will be paid directly

to you within the next two weeks.

Airs. W..' Oh, I don't have to worry, then.

B.t No. The income from your inheritance is going to

be quite sizable. Of course, we don't know yet what demands will be made against the estate.

Mrs. W.: As far as I know, there are no large creditors.

B.: We hope not. You understand, also, that this bank

is named trustee under the will. This means that we will take care of the portfolio of an annual report of all transactions.

Mrs. W.: Yes, I understand that. I feel much better about the future now.

IX. Make up youp own dialogue using the following expressions and word-combinations:

aggregate demand to employ fully productive resources

aggregate income to smooth income

fiscal policy to offset depreciation

desired investment desired saving

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