According to classical economists, the credit market reaches an equilibrium when
A. planned investment equals government expenditures.
B. desired investment equals planned changes in aggregate supply.
C. desired investment equals desired saving.
D. desired investment equals planned investment.
Answer: C
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Following an expansionary monetary policy, we would expect lower interest rates, dollar
A. depreciation, and an increase in the current account deficit. B. depreciation, and a decrease in the current account deficit. C. appreciation, and an increase in the current account deficit. D. appreciation, and a decrease in the current account deficit.
When aggregate expenditure is less than? GDP, which of the following is? true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.
Foziah is a policy maker who is very concerned about inflation. Should she support a law that will index federal workers’ pay to the inflation rate? Explain why or why not.
What will be an ideal response?
Why is a woman buying cosmetics at a department store considered a component of the product market?
a. A firm is selling products to a household. b. The purchase is regulated by the federal government. c. The product cannot be purchased anywhere else. d. The purchase price is presumably a small portion of her income.