If net exports are negative, then aggregate demand will be less than the sum of consumption, investment, and government purchases
a. True
b. False
Indicate whether the statement is true or false
True
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The interest rate at which the Federal Reserve Banks lend to commercial banks is called the ________.
A. discount rate B. short-term rate C. prime rate D. federal funds rate
In the example of good and bad cigarettes, the authors found that bad cigarettes where inferior because
a. they are an economic bad. b. second hand smoke is an economic bad. c. they comprised a large portion of the smokers budget. d. many more useful goods are also inferior.
Suppose the following information describes the economy:Consumption3000Government Budget surplus500Government transfers and interest payments750Government tax collections1,750GDP6,000Public saving equals ____and national saving equals ________.
A. 500; 1,500 B. 1,250; 2,250 C. 750; 2,750 D. 500; 2,500
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage in:
A. the production of bananas, but not tomatoes. B. the production of both bananas and tomatoes. C. the production of tomatoes, but not bananas. D. neither good.