A crucial national income accounting identity sets the government budget deficit equal to
A) S - I - NX.
B) S + I - NX.
C) S - I + NX.
D) S + I + NX.
A
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A natural monopoly is a firm that owns a key natural resource
Indicate whether the statement is true or false
The economy represented in the graph above has
A) low capital mobility. B) high capital mobility. C) perfect capital mobility. D) increasing capital mobility.
Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A) The longer is the time period for adjustment, the greater is the price elasticity of supply. B) The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms. C) The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry. D) The shorter the time period for adjustment, the greater is the price elasticity of supply.
Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?
a. Increase the market interest rate b. Purchase U.S. government securities c. Increase the discount rate d. Increase the price of consumer goods e. Increase the required reserve ratio