If the government has a $100 million budget deficit, private saving is equal to $500 million, private investment is equal to $300 million, what is the value of the current account in equilibrium?
A) $100 million surplus
B) $700 million surplus
C) $100 million deficit
D) $700 million deficit
A
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If government is to allocate resources efficiently, _____
a. competition among local governments should be limited in scope b. local governments should transfer powers to state governments whenever possible c. public goods should always be provided by the federal government d. public goods should be devolved to local governments whenever feasible
Cooling systems Carl is the lead engineer on a smart HVAC cooling system that works with minimal energy and is voice activated. Given the revolutionary nature of the system, it took many failed tries to create a system that actually worked, a cost of
$30,000 . Now each unit sells for $6500 and it costs $5000 in raw materials and labor to produce. What costs should Carl take into consideration when deciding to service the order for an additional unit?
Campaign finance reform is usually proposed
a. as a way of reducing the power of special-interest groups b. as a form of rent seeking c. by economists as a way of implementing the median voter model d. by political action committees e. by the Justice Department
If the aggregate supply curve has its normal shape, deficit spending will increase
a. both GDP and the price level at about the same rate. b. the price level before it increases real GDP. c. the price level but decrease real GDP. d. real GDP before it increases the price level.