In a closed economy taxes are $750 billion, government transfers are $400 billion, government expenditures are $500 billion, and investment is $400 billion. What are private saving, public saving and national saving?
Private saving is $550 billion, public saving is -$150 billion, and national saving is $400 billion.
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Under flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) the currency appreciates, and output falls. B) the currency depreciates, and output falls. C) the currency depreciates, and output increases. D) the currency depreciates, and output remains constant. E) the currency appreciates, and output increases.
Money's principal function is to serve as a
a. standard for making loans. b. standard for credit reporting. c. medium of exchange. d. method for storing wealth.
In monopolistic competition if there is profit, there is:
A. a signal for new firms to enter. B. a motive for existing firms to increase prices. C. proof that advertising works. D. a motive for existing firms to decrease prices.
Which of the following statements is not correct?
a. Novels are likely to be produced in a monopolistically competitive industry.
b. Cable television is likely to be produced in a monopoly industry.
c. Milk is likely to be produced in a monopolistically competitive industry.
d. Cigarettes are likely to be produced in an oligopoly industry.