If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
A) must be balanced.
B) must be positive.
C) must be negative.
D) could be either negative or positive, depending on the capital account.
E) could be either negative or positive, depending on the net international investment position.
B
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A mutual fund that purchases a wide variety of stocks will
A) eliminate systematic risk. B) minimize nonsystematic risk. C) minimize market risk. D) minimize default risk.
Many extended periods of high actual unemployment above the natural rate have been the result of
A) deliberate government anti-inflationary policy. B) high job turnover. C) mismatches in the labor market. D) unemployment compensation.
As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change. This is depicted by: a. a leftward movement of the aggregate demand curve
b. a rightward movement of the aggregate demand curve. c. an upward movement along the aggregate demand curve. d. a downward movement along the aggregate demand curve. e. an increase in the slope of the aggregate demand curve.
The second largest source of income for the federal budget is:
a. personal income taxes. b. corporate income taxes. c. payroll taxes. d. inheritance taxes.