If a country's private saving is 100 and government saving is -100, domestic private investment
A) must be 200.
B) must be zero.
C) is equal to the net amount the economy borrows from other countries.
D) is equal to the net amount the economy lends to other countries.
C
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If you withdraw currency from your checking account for cash, you are
A) increasing M1, decreasing M2. B) increasing both M1 and M2. C) decreasing both M1 and M2. D) not affecting M1 or M2. E) increasing M1 but not affecting M2.
"If an economy is producing at a point on its PPF, it has achieved allocative efficiency." True or false? Explain
What will be an ideal response?
Firms that sell information products experience relatively high fixed costs but, once they have produced the first unit, can
A) sell additional units at a loss, or above cost. B) provide expensive information products to consumers. C) sell additional units at a relatively low cost per unit. D) experience short-run diseconomies of scale.
If the quantity supplied is exactly the same regardless of the price, supply is