For a closed economy with no government, we know that at every level of GDP actual investment equals
A) the difference between planned investment and actual saving.
B) the difference between planned saving and actual saving.
C) planned investment.
D) planned saving.
D
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In part, an antitrust laws
A) provide for strict product liability. B) prohibit charging prices that customers think are too high. C) require firms with profits to pay dividends. D) prohibit monopolistic practices.
Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
Which of the following will shift the consumption function upward?
a. A tax increase. b. Higher capacity utilization rates. c. Higher disposable income. d. Lower wealth holdings. e. Expectations of inflation.
The central reason why there are gains from international trade is because a. trading allows otherwise unemployed people to have jobs
b. the rate of interest is not the same in all countries. c. resources are not equally distributed to all nations. d. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.