When the economy is in macro equilibrium,
a. the sum of savings plus investment must equal the sum of imports plus exports.
b. the sum of savings plus imports plus taxes must equal the sum of investment plus government purchases plus exports.
c. the sum of savings plus government purchases must equal exports minus imports.
d. the government's budget must be in balance.
B
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Refer to the figure above. If the price of a sweater is $3 and the budget constraint of the consumer is B3, his income is:
A) $45. B) $90. C) $135. D) $270.
In 1940 _____ of the population over 25 had a college degree
a. less than 5 percent b. around 10 percent c. around 15 percent d. more than 20 percent
An excise tariff imposed on foreign competitors will:
A. increase domestic firms' profits at all levels of demand. B. increase domestic firms' profits only when demand is high. C. have no impact on domestic firms' profits when demand for domestic goods is high. D. increase domestic firms' profits only when demand is low.
Which of the following increases demand for a good
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute