When the economy is in equilibrium, savings equals planned investment.
Answer the following statement true (T) or false (F)
True
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The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to
A) decrease SUV production by 1 million. B) decrease SUV production by 3 million. C) decrease SUV production by 4 million. D) decrease compact car production by 3 million. E) acquire more resources and/or more advanced technology.
A advantage of using swaps to hedge interest-rate risk is that swaps
A) are less costly than futures. B) can be written for long horizons. C) are not subject to default risk. D) are more liquid than futures.
In a command economy, the basic economic questions are answered by:
a. central authority. b. individual buyers and sellers. c. the traditional methods. d. none of these.
What does it mean when a country’s exchange rate weakens?
a. Its currency appreciates. b. Its currency gains in value. c. Its currency falls in value. d. Its currency buys more imports.