When disposable income is 3,000, savings is
A. 1,000
B. 750
C. 500
D. 0
C. 500
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Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
A) Aggregate demand is growing too fast to keep the economy at full employment. B) Potential GDP is forecasted to be lower than equilibrium GDP. C) Potential GDP is forecasted to be higher than equilibrium GDP. D) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.
James used $250,00 . from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for 320,000 . His accountant calculated his profit to be:
a. $320,000 b. $70,000 c. $282,500 d. $32,500
An increase in the exchange rate for a currency will increase the demand for that currency
Indicate whether the statement is true or false
Why do some economists prefer government planning and financing of big-push development to private sector development? Because
a. private firms have a longer planning horizon than governments b. governments have a longer planning horizon than private firms c. private firms cannot collect taxes d. it takes less initial start-up capital than any alternative development strategy e. private firms create markets and government planning does not require market creation