The 45-degree reference line indicates all points at which
A) planned real saving and planned real investment are equal.
B) planned real saving and planned real saving are equal.
C) planned real consumption expenditures and real GDP are equal.
D) planned real consumption expenditures and planned real saving are equal.
C
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What accounted for much of policymakers' concern over U.S. current account deficits in the 1980s, 1990s, and 2000s?
A) The current account deficits were thought to be largely responsible for the federal budget deficit. B) Current account deficits lower U.S. interest rates, thereby leading to reduced domestic saving. C) Current account deficits require the United States to borrow funds from foreign savers. D) The United States had signed international agreements in which it had pledged not to run a current account deficit for more than three years in a row.
If a drug company creates a new drug designed to treat common seasonal allergies is approved by the U.S. Food and Drug Association (FDA), which means the drug can be marketed and sold in the U.S., the approval by the FDA is an example of ________.
A) a trademark B) screening C) self-revelation D) a certification
In 2007, as stock prices in general were falling, many investors began switching their funds into purchasing bonds. Surveys suggest that many of these investors did not understand the basic relationship between bond prices and interest rates. Using a numerical example, illustrate how an increase in the demand for bonds would affect the interest rate paid on bonds.
What will be an ideal response?
How can the outsourcing of jobs cause production possibilities to expand?
What will be an ideal response?