If, for an imaginary closed economy, investment amounts to $12,000 and the government is running a $2,000 deficit, then private saving must amount to $10,000
a. True
b. False
Indicate whether the statement is true or false
False
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If the price index last year was 100 and today it is 167, what is the inflation rate over this period?
A) 33 percent B) -67 percent C) -6.7 percent D) 167 percent E) 67 percent
To help unscramble cause and effect, economists
A) use the concept of opportunity costs. B) must use the ceteris paribus assumption. C) answer the "what" question. D) answer the "how" question. E) must use normative statements.
Suppose the Federal Reserve increases bank reserves and banks lend out some of these reserves, but at some point banks still have $5 million more they wish to lend out. If the reserve requirement is 10 percent, how much more money can banks create if they lend out the remaining amount?
a. $55 million b. $50 million c. $45 million d. $40 million
The amount of corruption that occurs in a government is hard to measure because:
A. it is illegal, and therefore hidden. B. the benefits subtracted from the costs often go to a small number of people and distort the reality. C. its costs are mostly indirect and nearly impossible to measure. D. All of these are true.