The part of aggregate planned expenditure that does not vary with real GDP
a) equals equilibrium expenditure
b) is autonomous expenditure
c) is induced expenditure
d) equals zero
b) is autonomous expenditure
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Approximately what percent of all world production of goods and services is exported to other countries?
A) 10% B) 30% C) 50% D) 100% E) 90%
You deposit a $1,000 scholarship check in the bank. If the required reserve ratio is 10 percent, explain how the banking system will create new money and how much money can potentially be created
If the price of a normal good rises, the opportunity cost of that good rises and households buy less of the good.
Answer the following statement true (T) or false (F)
A government budget deficit occurs during a budget year when
A) tax revenues > government spending. B) tax revenues < government spending. C) tax revenues = government spending. D) tax revenues + government spending = personal consumption.