Consider a closed economy without a government and without international trade. What will be TRUE when this economy is in equilibrium?
A) Planned real consumption spending equals real GDP.
B) Total planned real investment spending will exceed total planned real expenditures.
C) Planned real consumption spending plus planned real investment spending equals real GDP.
D) Planned real investment spending will exceed real planned saving.
C
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If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $320 B) $2,000 C) $8,000 D) $9,600
. Jaime’s cross price elasticity of science fiction and mystery novels is -4. This means that the novels are
a. compliments. b. normal. c. substitutes. d. inferior.
Nominal GDP is:
A. the sum of all monetary transactions that occur in the economy in a year. B. the sum of all monetary transactions involving final goods and services that occur in the economy in a year. C. the amount of production that occurs when the economy is operating at full employment. D. money GDP adjusted for inflation.
The demographic transition view alleges that:
A. the DVCs must first accept the use of birth control techniques to increase their standards of living. B. population growth will only decline if mortality rates exceed birth rates. C. if incomes first rise, population growth will then decline. D. population growth has no bearing on a nation's per capita income.