National saving is
A) the sum of private saving and government saving.
B) reduced by government budget deficits.
C) the sum of private saving and the government budget deficit or surplus.
D) all of the above.
D
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Indicate whether the statement is true or false
When economists use the term ceteris paribus, they are indicating that
a. the relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole. c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative economics rather than positive economic analysis.
If the demand for salad dressing increases when the price of lettuce decreases, the cross-price elasticity of demand between salad dressing and lettuce will be ________ because these two goods are ________.
A. equal to 1; inelastic B. negative; substitutes C. negative; complements D. zero; inferior
The proportionate difference between the current forward exchange-rate value of a currency and its current spot value is the ________ premium.
A. investment B. currency-option C. frequent exchanger D. forward