In a closed economy that is in equilibrium, investment is equal to:
A. private saving.
B. public saving.
C. private saving plus public saving.
D. disposable income minus consumption.
Ans: C. private saving plus public saving.
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In the graph above, what do the dotted lines represent?
A) transaction and opportunity costs B) the boundaries of profitability for arbitrage C) the risk premium associated with the countries D) the variability in spot rate expectations
A demand curve
a. has a positive slope; that is, when price increases, quantity demanded increases b. depicts the negative relationship between price and quantity demanded; that is when price increases, quantity demanded falls c. depicts what happens to demand when supply changes d. depicts what happens to supply when demand changes e. illustrates that price and quantity demanded cannot change at the same time
Because of automatic stabilizers, government budget deficits are
a. positive during both expansions and contractions. b. negative during both expansions and contractions. c. zero if averaged out over the entire business cycle. d. larger during expansions and smaller during contractions. e. smaller during expansions and larger during contractions.
Compared to older workers with several years of experience with one firm, newly hired young workers typically
A. are likely to stay with their job longer. B. tend to earn more than their experienced colleagues. C. have more on-the-job training. D. have more experience. E. have higher turnover.