If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
A) must be balanced.
B) must be positive.
C) must be negative.
D) could be either negative or positive, depending on the net international investment position.
B
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Starting at point A, a reduction in government spending would cause
a. the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% (point C). b. the quantity of loanable funds traded to decrease to $75 and the interest rate to fall to 5% (point B). c. the quantity of loanable funds traded to increase to $125 and the interest rate to fall to 5% (point D). d. the quantity of loanable funds traded to decrease to $75 and the interest rate to rise to 7% (point E).
Some firms in the technology sector have achieved economies of scale because costs have been reduced by:
A. socially optimal pricing. B. price discrimination. C. fair return pricing. D. simultaneous consumption.
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 4?L?K. The firm has _____ units of capital. If the firm uses an efficient production method and hires _____ workers, it can produce _____ units of output.
A. 100; 100; 40,000 B. 100; 225; 90,000 C. 225; 100; 400 D. 225; 225; 900
In Country A, the marginal propensity to consume is ½, and in Country B, it is ¾. What does this tell us about the multipliers for these countries?
a. Country A has a larger multiplier than Country B. b. Country B has a larger multiplier than Country A. c. Both countries have the same multiplier. d. Country B will start with a larger multiplier and end with a smaller one.