Suppose that inventories were $80 billion in 2012 and $70 billion in 2013. In 2013, national income accountants would:
A. add $10 billion to other elements of investment in calculating total investment.
B. subtract $10 billion from other elements of investment in calculating total investment.
C. add $75 billion (= $150/2) to other elements of investment in calculating total investment.
D. subtract $75 billion (= $150/2) from other elements of investment in calculating total
investment.
B. subtract $10 billion from other elements of investment in calculating total investment
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Which of the following is FALSE about private savings and government savings?
A) SP = Y - T - C B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment. C) Total savings (S) = SP + . D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions. E) None of the above; all statements are true.
Imagine a crude banking system based on a reserve of 100 gold coins, with circulating paper deposit claims on 500 gold coins
This situation is sustainable if, among other things, merchants ________ accept paper claims on gold as payment for their goods, and gold coins withdrawn from the banking system are ________ the system. A) will, returned to B) will, kept out of C) will not, returned to D) will not, kept out of
The annuity factor ________ by the amount of the annual payment equals the ________ value of payments for the specified number of years at the specified discount rate.
A) multiplied; future B) divided; present C) divided; future D) multiplied; present
Firms in perfectly competitive markets are confined to making profits in the short run, but never a loss.
Answer the following statement true (T) or false (F)