Private investment equals
a. private savings + public savings + trade deficit.
b. private savings + public savings+ government budget surplus.
c. private savings + public savings + trade surplus.
d. private savings + public savings + government budget deficit.
a. private savings + public savings + trade deficit.
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You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
For the Coase theorem to work there must be clear assignment of property rights
Indicate whether the statement is true or false
Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand?
a. frictional unemployment b. structural unemployment c. natural unemployment d. cyclical unemployment
Given the market for illegal drugs, when the government is successful in reducing the flow of drugs into the United States,
a. supply decreases, demand is unaffected, and price increases. b. demand decreases, supply is unaffected, and price decreases. c. demand and supply both decrease, leaving price essentially unchanged. d. supply decreases, demand increases, and price increases substantially.