A country's current national savings and investment identity is expressed in algebraic terms as (M – X) = I – S – (T – G). In this instance,
a. domestic investment is higher than domestic savings.
b. domestic savings exceed domestic investment.
c. the country is experiencing a trade surplus.
d. government savings are excluded.
a. domestic investment is higher than domestic savings.
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In a constant-cost industry, input prices remain constant as:
a. the supply of inputs fluctuates. b. firms encounter diseconomies of scale. c. workers become more experienced. d. firms enter and exit the industry.
The equation for aggregate expenditure can be written as:
A. C+I+GDP B. C+Inventory+G+NX C. C+I+G+NX D. C+I+G+Exports
Which of the following is not a role of the government in the economy?
a. Establishing and Enforcing the Rules of the Game. b. Limiting Competition c. Regulating Natural Monopolies d. None of the above are roles of the government in economic systems.
Which of the following statements is INCORRECT?
A. The price elasticity of demand tends to be greater for a specific brand of a product than for a product in general. B. The price elasticity of demand tends to be smaller when consumers have less time to adjust to price changes. C. The price elasticity of demand tends to be greater when a product accounts for a smaller portion of the consumer's budget. D. The price elasticity of demand tends to be greater for a product with more substitutes available.