The trade balance is
A) by definition, identical to the current account balance.
B) is a major portion, but not the only component, of the current account balance.
C) almost invariably larger than the financial account balance.
D) the largest component of the financial account.
B
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If firms sell less output than expected, planned investment:
A. is greater than actual investment. B. equals zero. C. is less than actual investment. D. equals actual investment.
Households' ________ limit(s) firms' ability to invest in capital.
A. savings decisions B. supply of land C. investment in stock D. tax liability
At the optimal level of public goods provision, society's total willingness to pay per unit is equal to the marginal cost of producing the good.
Answer the following statement true (T) or false (F)
Refer to Table 16-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) decrease government purchases. B) decrease income taxes. C) increase the level of interest rates. D) decrease the money supply.