In an open economy, the source of the demand for loanable funds is
a. national saving
b. national saving + net capital outflow
c. investment + the government budget deficit
d. investment + net capital outflow
d
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In the Solow model, if f(k) = 8k0.5, s = 0.2, n = 0.3, and d = 0.1, what is the value of k at equilibrium?
A) 1 B) 4 C) 9 D) 16
The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2, nominal GDP grew by
A) 60.0%. B) 65.5%. C) 83.3%. D) 190.0%.
Helping the poor is not necessarily the same thing as promoting greater equality
a. True b. False
A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed capital in the year was $25 billion. Assuming stable prices, gross investment was:
A. $25 billion B. $50 billion C. $75 billion D. $90 billion