Refer to the information. In equilibrium, the level of saving will be:
Answer the question on the basis of the following information for a private closed economy. where S is saving, I g is gross investment, i is the real interest rate, and Y is GDP.
A. $10.
B. $15.
C. $20.
D. $30.
A. $10.
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Refer to Figure 13-2. Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
If I trade a ginger snap for a chocolate chip cookie, I am engaging in
a. barter b. comparative advantage c. absolute advantage d. privatization e. division of labor
According to Modigliani's life-cycle hypothesis, the
a. MPC for young adults is relatively low b. middle-aged experience their highest and most rapidly growing MPCs c. MPC falls during middle-age d. MPC falls during old age e. MPC is constant throughout a lifetime
"A country can be worse off as a result of free trade in an exported product if there are no policies that force market decision-makers to internalize the external costs associated with the domestic production of this product." Do you agree or disagree with the statement? Illustrate your answer with the help of relevant diagrams.
What will be an ideal response?