Total expenditure equals total income
What will be an ideal response?
Because firms pay out everything they receive.
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In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is
A) vertical. B) horizontal. C) positively sloped. D) negatively sloped.
Which of the goals pursued by policymakers in an open economy is desirable because can help reduce the volatility of economic activity?
A) exchange-rate stability B) monetary policy independence C) free capital flows D) appreciation of the domestic currency
Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:
a. growing suspicion among the nations of the world. b. hyperinflation in the major economies of the world. c. the recession which began in 2007. d. political turmoil in the Asian countries. e. the desire among the major players to dominate the international market.
If the budget deficit increases, then
a. an increase in the interest rate increases net capital outflow. b. an increase in the interest rate decreases net capital outflow. c. a decrease in the interest rate increases net capital outflow. d. a decrease in the interest rate decreases net capital outflow.