In the Keynesian model, whenever planned investment is less than planned saving
A) the amount of planned investment will decrease, and real GDP will decrease.
B) there will be an unplanned inventory increase, and real GDP will eventually decrease.
C) there will be an unplanned inventory decrease, and real GDP will eventually increase.
D) the amount of planned investment will decrease, and real GDP will remain unchanged.
B
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Successful adjustment to external imbalance is likely to involve
a. expenditure-reducing policies b. expenditure-switching policies c. import compression d. devaluation of the national currency e. all of the above
Taxation can promote good social policy while minimizing economic inefficiency
a. True b. False Indicate whether the statement is true or false
If there is excess Supply in the loanable funds framework?
A. Interest Rates are above equilibrium. B. Total borrowing is greater than total spending. C. Interest Rates are below equilibrium. D. Both B & C E. Both A & C
Suppose that a chair in Germany sells for 100 euros. The exchange rate changes from $1 = 1 euro to $1 = 4 euros. How does this change affect the equivalent U.S. dollar price of the chair?
a. The price decreases from $100 to $25. b. The price increases from $100 to $400. c. The price decreases from $400 to $100. d. The price increases from $25 to $400