The equation for aggregate expenditure can be written as:
A. C + I + GDP
B. C + I + G + Exports
C. C + Inventory + G + NX
D. C + I + G + NX
Answer: D
You might also like to view...
A Lorenz curve that represents an unequal income distribution is
A) a straight line starting at the origin. B) a straight line starting at 100% C) a bowed curved. D) a line that has a kink in the middle of it.
Obi-Wan is considering whether to buy a lightsaber. With probability 0.50 he will value the lightsaber at $4,000, and with probability 0.50 he will value it at $1,000. If new lightsabers sell for $2,500, then buying a new lightsaber is a:
A. fair gamble. B. less-than-fair gamble if Obi-Wan risk neutral. C. less-than-fair gamble. D. better-than-fair gamble.
Direct regulation means that government sets specific limits on the use of scarce resources.
Answer the following statement true (T) or false (F)
A lender faces a(n) ________ problem when the lender lends funds to a borrower for a specific purpose and the borrower then opportunistically uses the funds for another purpose.
A. moral hazard B. external cost C. free?rider D. adverse selection