When an economy is not in equilibrium,

A) planned expenditures exceed production and income.
B) there is no savings nor investment.
C) government tax revenues equal planned government expenditures.
D) production and income equal planned expenditures.


A

Economics

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The opportunity cost of holding excess reserves is equal to

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A) studies the behavior of the economy as a whole. B) includes the problems of inflation and unemployment. C) studies individual decision making by households and firms. D) concerns aggregate production and consumption.

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One goal of rate-of-return regulation is the prevention of

A. free market entry. B. environmental degradation. C. positive economic profits. D. poor quality service.

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