If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is
A. elastic.
B. unit elastic.
C. inelastic.
D. perfectly inelastic.
Answer: A
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Consider a small open economy with desired national saving of Sd = 20 + 200rw and desired investment of Id = 30 - 200rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0. (d) Now suppose something causes desired national saving to increase by 10, so that it is now Sd = 30 + 200rw. Repeat parts (a), (b), and (c). (e) Suppose, with desired national saving at its original level of Sd = 20 + 200rw, something causes desired investment to rise by 10, to Id = 40 - 200rw. Repeat parts (a), (b), and (c).
If Target were to merge with Wal-Mart, this would be referred to as a(n)
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) anti-competitive merger.
The natural rate of unemployment:
A. occurs at the economy's potential level of output. B. is zero. C. will cause a steady rise in the price level. D. All of these statements are true.
The system of measurement for expressing macroeconomic data is called
a. national income accounting. b. balance of payment accounting. c. generally accepted accounting principles. d. double entry bookkeeping.