If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent?
a. $1.8 trillion
b. $2.2 trillion
c. $2.8 trillion
d. $5.0 trillion
e. $5.8 trillion
B
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If the redistributive character of the tax system is measured by looking at the additional taxes paid by high-income individuals and reduction in taxes to low-income individuals, the dollar amount of redistribution will be _____
a. overestimated b. underestimated c. estimated correctly d. estimated improperly, possibly over or under
Refer to the table below. What is the profit-maximizing number of quality units for Stuffed Pies to produce?
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) 9
B) 11
C) 7
D) 13
Which of the following is an advantage of fixing exchange rates?
A) limiting foreign exchange risk B) making residents more mobile across countries C) eliminating trade deficits D) making the prices of foreign goods more flexible in the domestic market
According to fundamental analysis, a saver should prefer to buy stocks that are
a. undervalued. This means the price of the stock is low given the value of the corporation. b. undervalued. This means the value of the corporation is low given the price of stock. c. overvalued. This means the price of the stock is high given the value of the corporation. d. overvalued. This means the value of the corporation is high given the price of stock.