Dissaving occurs where:
A. income exceeds consumption.
B. saving exceeds consumption.
C. consumption exceeds income.
D. saving exceeds income.
C. consumption exceeds income.
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Brazil's export record in 1999 illustrated the principle that
A) a large country will tend to have few exports. B) a small country will tend to have a high export ratio. C) protectionist policies tend to discourage exports. D) export-promoting policies do not tend to work. E) import substitution policies helped the Brazilian economy.
In the short run, a firm operating in a monopolistically competitive market
a. produces an output level where marginal revenue equals average total cost. b. sets price equal to demand where marginal revenue equals marginal cost. c. must earn zero economic profits. d. maximizes revenues as well as profits.
The Treasury usually requires most businesses to regularly deposit taxes withheld from employees into accounts at designated commercial banks. On a regular basis, the funds in these accounts are transferred to the Treasury's account at the Fed. Discuss what is happening to the balance sheet of the banking system as the businesses are making deposits and these tax accounts are increasing. What happens to the banking system's balance sheet when the funds are transferred to the Fed?
What will be an ideal response?
If the desired fiscal restraint is $80 billion and the AD excess is $160 billion, we can conclude that
A. The MPC is 2.0. B. The multiplier is 0.50. C. The MPS is 0.50. D. There is a recessionary gap.