To increase domestic investment, a country must increase its saving
a. True
b. False
Indicate whether the statement is true or false
False
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An increase in real net exports leads to an increase in real GDP. Further
A) real consumption spending increases while real investment spending decreases. B) real government spending decreases to offset the increase in real net exports. C) real consumption spending and real saving increase. D) real consumption spending increases but real saving does not change.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP and current international transactions remain the same. d. Real GDP rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.
What are the two types of legal immigration in the United States?
What will be an ideal response?