After 1980 in the United States,
a. national saving fell below investment and net capital outflow was a large positive number.
b. national saving fell below investment and net capital outflow was a large negative number.
c. investment fell below saving and net capital outflow was a large positive number.
d. investment fell below saving, so net capital outflow was a large negative number.
b
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The bursting of the __________ market was largely responsible for setting off the Great Recession.
Fill in the blank(s) with the appropriate word(s).
Graphically, we can think of the marginal product of a factor as the:
A. slope of the total production curve, when output is plotted against the quantity of the input that is used. B. slope of the total cost curve, when output is plotted against the costs of the quantity of the inputs used. C. additional cost associated with producing one more unit of output. D. additional inputs associated with producing one more unit of output.
A firm will never operate at a loss
Indicate whether the statement is true or false
Refer to the diagram, in which Q f is the full-employment output. If aggregate demand curve AD 1 describes the current situation, appropriate fiscal policy would be to:
A. increase taxes and reduce government spending to shift the aggregate demand curve
rightward to AD 2 .
B. reduce taxes on businesses to shift the aggregate supply curve leftward.
C. reduce taxes and increase government spending to shift the aggregate demand curve from AD 1 to AD 2 .
D. do nothing since the economy appears to be achieving full-employment real GDP.