Goods market equilibrium in the open economy occurs when
A. desired saving minus desired investment equals net exports.
B. desired saving equals desired investment.
C. output equals desired consumption plus desired investment plus government spending.
D. desired consumption equals desired investment.
Answer: A
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Which of the following would be most likely to induce Congress and the president to conduct contractionary fiscal policy? A significant
A) decrease in oil prices. B) increase in labor productivity. C) increase in inflation. D) decrease in real GDP.
Hyperinflation occurs when
A) the inflation rate rises. B) the inflation rate declines. C) the inflation rate is extremely high. D) the inflation rate is extremely low.
Collusion is more successful in a game that will continue forever or in a game with an uncertain ending time than in a game with a known ending time
What will be an ideal response?
Which of the following is true of the production possibilities curve?
a. It assumes a fixed level of technology. b. It assumes resources are fixed. c. It assumes resources are fully employed. d. All of these are correct.