According to the simple circular flow concept, whenever planned investment is greater than planned saving during periods of full employment, there is a tendency for
a. output to rise.
b. prices to rise.
c. employment to increase.
d. government to regulate prices and wages.
b. prices to rise.
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Refer to the table above. The current account balance is
A) -$100 billion. B) -$200 billion. C) $100 billion. D) $1,900 billion. E) $200 billion.
For banks
A) return on assets exceeds return on equity. B) return on assets equals return on equity. C) return on equity exceeds return on assets. D) return on equity is another name for net interest margin.
U.S. imports of sugar
a. have been illegal since the mid-1980s b. harm U.S. sugar producers c. increase the U.S. government's revenue d. are restricted by tariffs e. are restricted by import quotas
Figure 4-11 Refer to . On the Laffer curve shown, which of the following is true?
a. Tax revenue would increase if marginal tax rates were lowered from point C.
b. Tax revenue would decrease if marginal tax rates were lowered from point A.
c. Tax revenues are maximized at a tax rate corresponding to point B.
d. All of the above are true.