Last year country A's residents purchased $700 billion of goods and services from and sold $500 billion of goods and services to residents of foreign countries. Its domestic investment was $1,100 . What was country A's saving? Show your work
net capital outflow = net exports = $500 billion - $700 billion = -$200 billion.
saving = domestic investment + net capital outflow
saving = $1,100 billion - $200 billion = $900 billion
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One major consequence of the federal government's deregulation of the trucking industry was
A) a sudden and large financial loss for owners of trucking firms. B) fewer jobs for truck drivers. C) higher prices paid by shippers. D) less competition for railroads and barge lines. E) predatory pricing in the trucking industry.
Suppose the government changed the tax laws, with the result that people were encouraged to consume more and save less. Using the loanable funds model, a consequence would be
a. lower interest rates and lower investment. b. lower interest rates and greater investment. c. higher interest rates and lower investment. d. higher interest rates and higher investment.
Which of the following securities has the greatest risk?
a. commercial paper b. corporate bonds c. corporate common stocks d. U.S. Treasury bills e. state and local government bonds
Consider a graph of a production possibilities curve. If a producer is operating at an inefficient point, then that producer:
A. must be at an unattainable point on the production possibilities curve. B. can produce more of one good without producing less of the other good. C. must be specializing in activities for which it has a comparative advantage. D. cannot produce more of one good without giving up some of the other good.