Discuss the values of private saving in closed and open economies
What will be an ideal response?
In a closed economy, private saving, , is equals to, I + (G - T). In a open economy, private saving, , is equals to I + CA + (G - T). Open economy helps in extending the opportunities for private saving or dis-saving, or borrowing.
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Suppose there are two economies, Alpha and Beta, that have the same production possibilities frontiers. If Beta devotes more resources to produce capital goods than consumer goods as compared to Alpha, then in the future
A. Beta will experience greater economic growth than Alpha. B. Alpha will not be able to achieve full employment or productive efficiency. C. Alpha will experience greater economic growth than Beta. D. Beta will not be able to achieve full employment or productive efficiency.
If the Japanese central bank sells yen and buys U.S. dollars, the U.S. dollar will appreciate
Indicate whether the statement is true or false
Which one of the following industries is best classified as an oligopoly?
A) textbook publishers B) retailing C) wheat farms in the United States D) fast food restaurants
National debt is the federal government’s total indebtedness at a moment in time.
Answer the following statement true (T) or false (F)