A crucial national income accounting identity has (S + T) equal to
A) I + G - NX.
B) I + G + F.
C) I + NX.
D) G + F.
E) I + G + NX.
E
You might also like to view...
Use the following graph for a private closed economy (an economy with only a private sector and no international trade) to answer the next question.
The equilibrium level of real GDP in this economy is
A. $250 billion. B. $350 billion. C. $450 billion. D. $150 billion.
Use Figure 16.2 above to answer the following question. Assume that MPC represents the marginal private cost and MB is the marginal private benefit for a particular firm
Assume however, that the MDC represents the marginal damage cost of this firm's activity and the MSC is the marginal social cost. How much output would the firm produce if it had to internalize the negative externality.
The purchasing power parity (PPP) method
a. calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency. b. calculates how much the general price level has increased within one specific country through time. c. calculates how much the average standard of living across all countries has changed through time. d. is used when one wants to compare dollar values from today with those from more than 100 years ago.
In the market for euros, a decrease in U.S. imports from Europe tends to
A. increase excess demand. B. decrease equilibrium price. C. cause no change in equilibrium price. D. increase equilibrium price.