If we take into account transfer payments (TR) when we derive the saving and investment relationship, the saving and investment equation becomes
A) S = I + NFI + TR. B) S + TR = I + NFI. C) S = I + NFI. D) S = I + NX - TR.
B
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Terry wants to sell his car and the lowest price he is willing to accept is $3,000 . Alice likes the car and is willing to pay at most $4,000 for it. They begin to negotiate to arrive at a price. Which of the following statements will be true?
a. They are playing a zero-sum game. b. The higher the price they agree on, the greater the benefit to both. c. The longer they take to arrive at an agreed price, the lower the benefit to them. d. They are playing a positive-sum game where their benefits add up to $1,000.
If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation rate is 3 percent
a. True b. False Indicate whether the statement is true or false
Which one of the following is to be a tool of monetary policy for altering the reserves of commercial banks?
a. Unemployment rate b. Budget surplus or deficit c. Tax rate d. Discount rate
Suppose that the only input used in the generation of solar energy is sunlight and has a zero cost. The average total cost of producing electricity is:
A. zero. B. equal to the marginal cost. C. equal to the average fixed cost. D. immeasurably high.