A closed economy
A) can save either by building up its capital stock or by acquiring foreign wealth.
B) can save only by building up its capital stock.
C) can save only by acquiring foreign wealth.
D) cannot save either by building up its capital stock or by acquiring foreign wealth.
E) can save by avoiding excessive imports.
B
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In the Keynesian model, and expected increase in the interest rate
a. increases the demand for bonds and the demand for money. b. increases the demand for bonds and the demand for stocks. c. decreases the demand for bonds and increases the demand for money. d. increases the demand for bonds and decreases the demand for money.
Which of the following is true of taxes?
What will be an ideal response?
The trade-off between unemployment and inflation is known as
A. an expansionary gap. B. the Phillips curve. C. the misery curve. D. the Keynesian mechanism.
If the price of an input decreases, each individual firm?s marginal cost curve shifts ________ and the industry supply curve ________.
A. up; shifts to the left B. up; does not change C. downward; shifts to the right D. downward; shifts to the left