In a closed economy, the formula for private saving is: Sprivate = Y - C - T + TR
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Whether real seignorage revenue increases when the rate of money growth increases depends on whether
A) the rise in real money holdings outweighs the decline in inflation. B) the rise in inflation outweighs the decline in real money holdings. C) the rise in inflation ratio outweighs the decline in the real supply of currency. D) the rise in the real supply of currency outweighs the decline in inflation.
In the long-run equilibrium for a perfectly competitive firm, price equals which of the following?
a. price. b. minimum short-run average total cost. c. short-run marginal cost. d. All of these.
Which of the following statements is a public choice economist most likely to agree with?
A) People who work for the federal government are naturally lazy, whereas people who work for private firms are naturally hard working. B) Good government comes from good people, bad government comes from bad people. C) Change the institutional arrangements, and you will change behavior. D) Bad people naturally gravitate toward a career in politics. E) Good people naturally gravitate toward a career in politics.
A open market purchase of government securities by the Fed will cause which of the following?
A. an increase in the equilibrium quantity of reserves B. an increase in the amount of excess reserves that banks will hold initially C. a reduction in the federal funds rate D. all of these