Saving is $15 billion at the $125 billion equilibrium level of output in a closed, private economy. Actual investment must be:
A. Less than saving
B. Greater than saving
C. Equal to $15 billion
D. Equal to $125 billion
C. Equal to $15 billion
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The U.S. saving rate is
A) rapidly increasing. B) higher than that of most major countries. C) low. D) negative.
At the Great Exhibition in London (1851), American products were a primary attraction because they were:
a. elegantly designed. b. very long lasting. c. cheap and functional. d. handmade by skilled artisans.
Which of the following examples shows inventory investment?
a. Vicente’s Bookstore orders many bestselling books to be ready for the holiday season. b. Florencia hires another employee to help during the holiday rush. c. Diego buys several glass blowers to help his production of glass vases. d. Martina has a new air conditioning system installed to make workers more comfortable.
According to the circular flow model, ________.
A. net investment must equal gross investment B. income must equal expenditures C. exports must equal imports D. saving must equal investment