Refer to the diagram for a private closed economy. At the equilibrium level of GDP, investment and saving are both:
A. $50.
B. $100.
C. $20.
D. $40.
A. $50.
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National income is the income that individuals and firms earn from their production
Indicate whether the statement is true or false
A ________ is owned by its stockholders
A) sole proprietorship B) partnership C) corporation D) All of the above are correct.
In 2005–2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to saving accounts.
On November 20, 1985, the Bank of New York needed to use the lender of last resort function due to:
A. a rumor that the bank was about to be taken over by FDIC due to insolvency. B. a computer error caused the bank's records to wipe out the balances of all of its customers. C. a run on the bank started by a rumor that the president of the bank embezzled tens of millions of dollars from the bank. D. a computer error that made it impossible for the bank to keep track of its Treasury bond trades.