If X - M = $0 and the government sector has a deficit of $250 billion, the private sector
A) has a deficit that equals $250 billion.
B) has a deficit that equals $500 billion.
C) has a surplus that equals $250 billion.
D) has a surplus that equals $500 billion.
C
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"Final goods and services" are those that are
A) sold to ultimate or final purchasers. B) produced outside the United States. C) double counted in the calculation of GDP. D) used in the production of other goods and services.
Do you think sellers in a perfectly competitive market can price their goods differently? Explain your answer
What will be an ideal response?
If people decide to hold some of their cash and not deposit it, then the:
A. money multiplier overestimates how much money will be created in the economy. B. money multiplier underestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be raised. D. reserve ratio is not fully functioning, and should be lowered.
Which of the following is a determinant of investment?
a. Technological change b. Net exports c. Demographics d. Nominal GDP e. Population