In the circular flow diagram saving
a. is a leakage and investment is an injection.
b. and investment are both injections.
c. is an injection and investment is a leakage.
d. and investment are both leakages.
a
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Refer to the production possibilities frontier figure above. Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y?
A) from point e to point d B) from point d to point c C) from point c to point b D) from point b to point a
With an optimal two-part tariff
A) all consumer surplus is transformed into profit. B) consumer surplus equals producer surplus. C) the firm earns zero profit. D) consumers maximize consumer surplus.
The two key factors that trigger speculative attacks on emerging market currencies are
A) deterioration in bank balance sheets and severe fiscal imbalances. B) deterioration in bank balance sheets and low interest rates abroad. C) low interest rates abroad and severe fiscal imbalances. D) low interest rates abroad and rising asset prices.
Nominal wage confusion occurs when
What will be an ideal response?