When a government records a budget surplus, the national savings and investment identity is written as _____.
a. S = I + (G - T) + (X - M)
b. S + (M - X) + (T - G) = I
c. S - (G - T) = I - (X - M)
d. S + (T - G) = 1 + (X - M)
b. S + (M - X) + (T - G) = I
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A long put position
A) has a value of zero if the stock price is below the exercise price. B) has a value equal to the stock price minus the exercise price if the stock price is above the exercise price. C) has a value of zero if the stock price at the time of purchase exceeds the expected stock price at option expiration. D) has a value equal to the exercise price minus the stock price if the stock price is below the exercise price.
The optimal level of military expenditures is the level at which _____
a. a country is completely protected from foreign invasion b. a country spends more on national defense than all other countries along it to win an arms race c. a country spends more on national than its rivals d. the marginal benefit of additional expenditures equals marginal cost
Voluntary agreements about cleaning up pollution attempt to
A) internalize externalities. B) internalize private costs. C) externalize social costs. D) externalize private costs.
The lion’s share of purchases and transactions in the U.S. economy are made with coins and paper money.
Answer the following statement true (T) or false (F)