Net exports equal
a. exports plus imports.
b. imports minus exports.
c. Y - (C + I + G).
d. Y - (C - I - G).
c
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The marginal propensity to save (MPS) is computed as the change in:
a. savings divided by the change in saving. b. savings divided by the change in disposable personal income. c. saving divided by the change in GDP. d. None of these.
The nominal interest rate is the sum of the
a. real interest rate and the historic rate of inflation. b. real interest rate and the expected rate of inflation. c. historic rate of inflation and the expected rate of inflation. d. expected rate of inflation and the rate of price level increase.
If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures
a. True b. False Indicate whether the statement is true or false
If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be
a. better off regardless of how Colombia responds. b. better off if Colombia removes the subsidies, and will be no worse off if it doesn't. c. worse off if Colombia doesn't remove the subsidies in response to the threat. d. worse off regardless of how Colombia responds.