Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, and output = 5000, then absorption equals
A) 5100.
B) 5050.
C) 4950.
D) 4900.
B
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is
A. the same as that of a tariff of Pa?Pt. B. the same as that of a tariff of Pt?Pc. C. to raise price higher and lower consumption further than a tariff of Pt?Pc. D. the same as that of a tariff of Pa?Pc.
According to the Coase theorem, under certain conditions the market can internalize externalities.
Answer the following statement true (T) or false (F)
The money supply known as M2:
a. includes large denomination time deposits. b. excludes interest-earning checking accounts in savings and loans. c. does not include money market mutual accounts. d. includes savings accounts and small denomination time deposits. e. includes large denomination repurchase agreements.
Trevor and Lynda bought a home in 2013 for $185,000 with a 20% down payment. Their mortgage payments were only applied to interest on the mortgage balance. In 2017, the couple sold their home for $148,000. What was the value of their equity?
a. 0 b. $37,000 c. $11,100 d. $18,500