Bill’s income is $4,000. He spends $3,000 on consumption and $300 on an investment in a newly constructed house. He acquires $700 in fi nancial assets. What is his saving? What is the amount of...

Bill’s income is $4,000. He spends $3,000 on consumption and $300 on an investment in a newly constructed house. He acquires $700 in fi nancial assets. What is his saving? What is the amount of surplus funds he has available to lend?

Defi ne laissez- faire and fi scal policy. Who determines fi scal policy? Who determines monetary policy?