In an open economy, Y = C + I + G + NX. From this we may infer that ________
A) output is greater in an open economy than in a closed economy
B) the condition for goods market equilibrium is that S = I + G + NX
C) net exports can be zero only if the domestic real interest rate is equal to the world real interest rate
D) if saving is greater than zero, NX cannot be zero
E) none of the above
E
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Refer to the accompanying table below. The marginal cost of the 4th unit of activity is:Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $10 B. $8 C. $6 D. $5
If a competitive market is at equilibrium, and if there is a sudden increase in demand, then a temporary
a. surplus will occur and the price will increase. b. shortage will occur and the price will fall. c. surplus will occur and the price will fall. d. shortage will occur and the price will increase.
Business cycles are
a) seasonal changes in output b) quarterly profit and loss fluctuations around a company’s fiscal-year average c) long run trends upward or downward in employment d) medium-term fluctuations of aggregate output around its long term trend e) gyrations of share prices on the stock market
Answer the following questions true (T) or false (F)
1. One possible reason as to why consumers respond to sales is that by displaying a "high" regular price and a "low" sale price, sales provide consumers with a reference point to interpret the prices being offered. 2. The demand for gasoline is perfectly inelastic because most people need gasoline to drive their cars. 3. If the demand for a product is elastic, the quantity demanded changes by a larger percentage than the percentage change in price.