Assume the price of good X is Px, price of good Y is Py, and B is the budget. The formula for the budget line for these two goods is:

a. PyQy / PxOx.
b. PxB + PyB = B.
c. PxX + PyY = B.
d. (1 ? Py / B) Px.


c

Economics

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A. 1,440. B. 1,000. C. 1,160. D. 1,280.

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An expansionary fiscal policy may be:

A. offset by lowering tax rates. B. reinforced by raising tax rates. C. partially offset by the crowding-out effect. D. reinforced by the crowding-out effect.

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A. some transaction costs. B. long-term contracts. C. extremely high transaction costs. D. no transaction costs.

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Which of the following is NOT true about this national income equation:

A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case. B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving. C) For the current account, CA, to improve, the government may have to run budget surplus. D) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.

Economics