The economy is in equilibrium when [I + G = S + T], assuming there is
A. positive net exports.
B. no foreign trade.
C. no government or taxes.
D. negative net exports.
Answer: B
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Which of the following decreases money demand?
A) Bonds become more risky. B) The introduction of online banking. C) Disruptions in the banking system. D) An increase in ATM fees.
In the steady state of Solow's exogenous growth model, an increase in the savings rate
A) increases output per worker and increases capital per worker. B) increases output per worker and decreases capital per worker. C) decreases output per worker and increases capital per worker. D) decreases output per worker and decreases capital per worker.
The private information revealed during screening typically refers to information:
A. that is personal. B. that is embarrassing. C. that is not public. D. that individuals generally do not want anyone to find out.
Unlike oligopoly, other market structures are such that
a. profits are usually low or nonexistent b. firms in those structures need not observe each other to make price and production decisions c. collusion within the structures is easy to accomplish because firms try to avoid competition d. prices tend toward a stable equilibrium e. there are more firms in every other structure