If net exports are positive:
A. the equilibrium GDP must be greater than the full-employment GDP.
B. imports must exceed exports.
C. aggregate expenditures are greater at each level of GDP than when net exports are zero
or negative.
D. some other component of aggregate expenditures must be negative.
C. aggregate expenditures are greater at each level of GDP than when net exports are zero
or negative.
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At the break-even point for the consumption function
A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l.
Both the nominal rate of interest and the real return on investment increase with the inflation rate
Indicate whether the statement is true or false
A partnership is limited to how many owners?
A) 2 B) 5 C) less than 10 D) There is no limit to the number of owners.
An economic theory: a. should be as detailed as possible in order to model the complexity of an economy
b. is an abstraction from reality. c. is only useful if it rests on realistic assumptions. d. is unrealistic and therefore of dubious usefulness in explaining what occurs in a complex economy.