Use the following table to answer the next question. All figures in the table below are in billions of dollars. RGDPAggregate Expenditures (Closed Economy)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If exports should decrease by $20 billion at each level of real GDP, other factors constant, then the equilibrium real GDP for the economy will be
A. $500 billion.
B. $450 billion.
C. $550 billion.
D. $650 billion.
Answer: B
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When a particular resource is commonly used, it tends to get underutilized
a. True b. False Indicate whether the statement is true or false
Open-market operations are:
A. sales or purchases of government securities, by the Fed, to or from banks on the open market. B. regulations that set the minimum fraction of deposits banks must hold in reserve. C. operations that allow any bank to borrow reserves from the Fed at a special interest rate, called the discount rate. D. the purchase and sale of financial instruments on the open market.
The government supports economic growth by investing in:
a. education, savings, and scientific research. b. education, exploration, and internationalization. c. savings, production, and technology. d. technology, savings, and production.
The demand for reserves depends on income and the price level
a. True b. False Indicate whether the statement is true or false