Which of the following is a possible impact of a global savings glut on a small open economy?
A) interest rate would increase
B) interest rate would decrease
C) domestic savings would increase
D) domestic investment would increase
D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
What is a household's real income?
What will be an ideal response?
Consider a car dealership advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a downpayment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.
GDP measures the total income of everyone and the total spending by everyone in the economy.
Answer the following statement true (T) or false (F)