Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion.
b. $130 billion.
c. $1,873 billion.
d. $1,227 billion.
e. $967 billion.
e
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If the goods' money prices do not change, an appreciation of the dollar against the pound
A) makes British sweaters cheaper in terms of American jeans. B) makes British sweaters more expensive in terms of American jeans. C) doesn't change the relative price of sweaters and jeans. D) makes American jeans cheaper in terms of British sweaters. E) makes British jeans more expensive in Britain.
The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent specific tax on the good sold by the firm will cause the firm to
A) demand less labor. B) demand more labor. C) offer its workers only $4.90 per hour. D) hire 0 units of labor per hour.
Which of the following has the highest future value?
a. $100 saved for 2 years at 10 percent interest b. $110 saved for 2 years at 9 percent interest c. $120 saved for 2 years at 8 percent interest d. $130 saved for 2 years at 7 percent interest
Refer to the information provided in Table 23.1 below to answer the question(s) that follow. Table 23.1
Refer to Table 23.1. At an aggregate income level of $100, aggregate saving would be
A. -$70. B. -$30. C. $50. D. $70.