In an open economy, domestic investment equals:
A. domestic saving plus net capital outflows.
B. domestic saving.
C. net capital inflows.
D. domestic saving plus net capital inflows.
Answer: D
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In a study session, your friend says, "Demand is elastic if the percentage change in the price exceeds the percentage change in quantity demanded." Is your friend correct?
What will be an ideal response?
A creator of an action movie who wants to protect their intellectual property would apply for which of the following?
A) a trade secret B) a copyright C) a patent D) a trademark
Given the following formula for the Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 1/2(inflation gap) +1/2(output gap) if the current rate of inflation is 4%, natural rate of interest is 2%, and the target rate of inflation is 2%, and output is 3% above its potential, the target federal funds rate would be:
A. 4.5%. B. 7%. C. 8.5%. D. 5%.
An expansionary fiscal policy can be illustrated by a(n):
a. Decrease in aggregate demand b. Increase in aggregate demand c. Change in the price level d. Increase in aggregate supply