When the economy is in equilibrium, we know with certainty that
A) public saving equals investment.
B) private saving equals investment.
C) G = T.
D) none of the above
D
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Owners of a corporation have limited liability for the debts of the business.
Answer the following statement true (T) or false (F)
Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. If the exchange rate between apples and oranges in international markets is 1 ton of oranges per 3 tons of apples: a. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export oranges to other
countries. b. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export apples to other countries. c. Karl and Adam will trade apples and oranges with one another. d. Karl and Adam will not specialize or engage in international trade.
Define the following terms and explain their importance in the study of macroeconomics:
a. consumer expenditures b. investment spending c. national income d. transfer payments
A headline reads: "Fed Raises the Federal Funds Rate by Half a Point." The content of this headline indicates that monetary policy is:
a. Becoming more restrictive b. Becoming more expansive c. Being reinforced by a change in fiscal policy d. Being offset by a change in fiscal policy