Saving is $40 billion and planned investment is $28 billion at the $175 billion level of output in a private closed economy. At this level:
A. Consumption will be $147 billion
B. Actual investment will be $28 billion
C. Unplanned investment will be positive $12 billion
D. Unplanned investment will be negative $12 billion
C. Unplanned investment will be positive $12 billion
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Decreases in the value of existing assets are called:
A. capital losses. B. investment. C. capital gains. D. saving.
In the above figure, a movement from point B to point C represents
A) an increase in the quantity of money demanded. B) a decrease in the quantity of money demanded. C) a decrease in the demand for money that might be the result of an increase in real GDP. D) an increase in the demand for money that might be the result of a fall in the price level. E) an increase in the demand for money that might be the result of an increase in real GDP.
Tyler's wage rises and he chooses to increase the number of hours he supplies to the labor market. What does this imply about the relative sizes of the substitution effect and the income effect? Explain
What will be an ideal response?
The money supply is $12.5 million, currency held by the nonbank public is $2.5 million, and the reserve-deposit ratio is 0.25.(a)What is the quantity of bank deposits?(b)What is the quantity of bank reserves?(c)What is the quantity of the monetary base?(d)What is the money multiplier (give a number)?
What will be an ideal response?