A) domestic investment will rise by $60 million.
B) private saving will fall by $60 million.
C) national saving will fall by $60 million.
C) national saving will fall by $60 million.
D) national saving will increase by $60 million.
According to the saving and investment equation, if net foreign investment rises by $60 million,
Ans: D) national saving will increase by $60 million.
Economics
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The M2 money supply is equal to the M1 money supply plus
A) small time deposits, savings deposits, and retail money market mutual fund shares. B) all credit card balances and retail money market mutual fund shares. C) large time deposits and retail money market mutual fund shares. D) every account held by commercial banks.
Economics
Which of the following statements describes the situation for the United States at a real interest rate of 4 percent?
a. There is a capital inflow from the United States to the United Kingdom.
b. The interest rate is at the equilibrium level for the United States.
c. The quantity of loanable funds demanded by U.S. borrowers is greater than the quantity of loanable funds supplied by U.S. lenders.
d. The quantity of loanable funds demanded by U.K. borrowers is greater than the quantity of loanable funds supplied by U.K. lenders
Economics
Steve can tell if his car has been fixed or not—it works, or it doesn't—but he cannot tell how it was fixed. The car repair is a(n)
A) experience good. B) credence good. C) logo good. D) search good.
Economics
Under the Bretton Woods system, a country could alter its exchange rate
A) by changing its value relative to gold. B) whenever it determined that there was a fundamental disequilibrium. C) only when the IMF permitted due to a fundamental disequilibrium. D) under no circumstances.
Economics