Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

A) 150.
B) 200.
C) 250.
D) 300.


D

Economics

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Answer the following statement true (T) or false (F)

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Assume that you are a policy adviser who believes that money demand is highly interest-sensitive but investment is not. Asked your advice on how to pull the economy out of a recession, you are likely to emphasize

A) contractionary monetary policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) expansionary fiscal policy.

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A. The cost of the factory B. Employee wages C. The rope-cutting machine D. All of these expenses would be included in variable costs.

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Economics