Which of the following statements is correct for a private closed economy?
A. Saving equals planned investment only at the equilibrium level of GDP.
B. All levels of GDP where planned investment exceeds saving will be too high for
equilibrium.
C. Planned and actual investment are identical at all possible levels of GDP.
D. Saving equals actual investment only at the equilibrium level of GDP.
A. Saving equals planned investment only at the equilibrium level of GDP.
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Fluctuations in the current account balance are mainly the result of fluctuations in
A) net interest. B) net exports. C) foreign reserves. D) net transfers. E) imports of capital.
McDonald's restaurant located near the high school offered a Tuesday special for high school students. If high school students showed their student ID cards, they would be given 50 cents off any medium combination meal
This practice is an example of: A) collusion. B) price discrimination. C) two-part tariff. D) bundling. E) tying.
If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $1.00 to $1.30 would reduce quantities demanded by about
a. 27 percent. b. 40 percent. c. 12 percent. d. 95 percent.
Suppose that you borrow $10,000 for two years, and at the end of the second year, you must repay $11,664. The interest rate is
A) 16.7 percent. B) 8.0 percent. C) 7.0 percent. D) 9.0 percent.