An open economy with a government sector is in equilibrium and imports are equal to exports. This means that:
(a) Investment plus taxation is equal to savings plus government spending;
(b) Investment plus government spending is equal to savings plus taxation;
(c) Investment plus government spending is greater than savings plus taxation;
(d) Investment plus taxation is less than savings plus government spending.
Answer: (a) Investment plus taxation is equal to savings plus government spending;
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In the current? year, a? nation's government spending equals? $100 trillion and its revenues are? $130 trillion. Which of the following is? TRUE?
A. The nation has a current year trade surplus of? $230 trillion. B. The? nation's national debt equals? $30 trillion. C. This nation has a current year budget surplus of? $30 trillion. D. This nation is currently running a budget deficit of? $30 trillion.
Refer to the information provided in Table 24.5 below to answer the question(s) that follow.Table 24.5All Numbers are in $ Million
Refer to Table 24.5. Which of the following variables is not considered autonomous?
A. planned government spending B. planned investment C. saving D. none of the above
The invention of new technology that can double the amount of gold extracted from raw ore will lead to a
A. higher world price of gold, since mining companies must pay for the new machinery. B. lower world price of gold, since any amount of gold output is now cheaper to produce. C. higher world price of gold, because miners’ wages must double as their productivity doubles. D. lower world price of gold, but only if new mining companies are not allowed to enter the industry.
"When the Fed is concerned with an inflationary gap it buys government securities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?