Let C = 120 + 0.8y. Assume no government or foreign sectors. At the equilibrium level of income, y* = 200, the level of saving is

A) -80. B) -30. C) 96. D) 160.


A

Economics

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In a centrally planned economy, the government decides how economic resources will be allocated

Indicate whether the statement is true or false

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Suppose you make $1,000 investment today that you believe will have a one-time return of $2,500 in 5 years. If the interest rate is 12%, will you have a profitable investment?

A. Yes, because the NPV is positive B. Yes, because the NPV is negative C. No, because the NPV is positive D. No, because the NPV is negative

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National income is equal to

A. the sum of all factor payments to resource owners. B. Gross Domestic Product (GDP) minus indirect business taxes. C. Gross Domestic Product (GDP) plus depreciation and indirect business taxes. D. Gross Domestic Product (GDP) minus NDP.

Economics