Alice Hanson Jones (1980) finds that private nonhuman physical wealth in New England in 1774 was 36.4 pounds sterling per capita. Thus, assuming a capital output ratio of 3:1, Jones estimates that per capita income in New England in 1774 equaled:
a. about 9 pounds sterling.
b. about 12 pounds sterling.
c. about 45 pounds sterling.
d. about 145 pounds sterling.
b. about 12 pounds sterling.
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Saving is S, investment is I, net taxes is NT, government expenditure is G, exports is X, and imports is M. Using these symbols, what is the relationship among the saving, investment, net taxes, government expenditure, exports, and imports?
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Under a flexible exchange rate system, one factor that does NOT directly affect rates of exchange is
A) changes in the inflation rate in each country. B) changes in productivity in each country. C) changes in gold holdings in each country. D) changes in economic stability in each country.
When two goods are unrelated,
A. their cross price elasticity of demand will be 0. B. their cross price elasticity of demand will be infinity. C. their cross price elasticity of demand will be negative. D. their cross price elasticity of demand will be positive.