Using the data in the above table, if the private sector runs a surplus of $250 billion, imports will equal $1,000 billion if
A) government expenditure equals -$750 billion.
B) investment equals -$1000 billion.
C) government expenditure equals -$1000 billion.
D) the government sector runs a deficit of $750 billion.
D
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If, while you are holding a coupon bond, the interest rates on other similar bonds fall, you can be sure that
A) the coupon payments on your bond will fall. B) the market price of your bond will rise. C) the market price of your bond will fall. D) the par value of your bond will rise.
A current worker may save more towards retirement so that he or she will have more to leave his or her children later. This altruistic motive is known as the
A. altruism effect. B. bequest effect. C. income effect. D. savings effect.
Which of the following is not a component of the demand for loanable funds?
A. Household purchases of housing and durable consumer goods. B. Business purchases of capital goods. C. Government financing of the public debt. D. Household saving.
Using the data in the above table, if saving equals $650 billion and exports are greater than imports,
A) the government sector must run a deficit. B) net taxes will be greater than $1300 billion. C) net taxes will be less than $650 billion. D) government expenditures must increase.