When current production of goods and services in an economy is greater than planned aggregate expenditure, _____
a. inventories of goods and services will increase
b. firms will increase production to replenish depleted inventories
c. businesses and households will increase planned aggregate spending
d. the price level will automatically rise to restore equilibrium in the economy
e. leakages must equal planned injections
a
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When we talk about total saving, we add together personal saving, _______ saving, _______ saving and _______ saving.
Fill in the blank(s) with the appropriate word(s).
A U.S.-based multinational has two subsidiaries, one in Lithuania where the tax rate is 15%, and one in Ireland where the tax rate is 2%. The tax rate in the U.S. is 35%
If the Lithuanian-based subsidiary is transferring a good to the Irish subsidiary and the goal is to avoid taxes, it will A) sell it to the U.S. parent at a transfer price equal to marginal cost, which will then sell it to the Irish subsidiary at monopoly level pricing. B) set the transfer price to the Irish subsidiary at the monopoly level. C) set the transfer price to the Irish subsidiary at marginal cost. D) Unable to determine with the information given.
What is the impact on the foreign exchange rate?
a. The euro exchange rate declines from $1.00 per euro to $0.50 per euro.
b. The dollar price of euros decreases from $1.50 to $1.00.
c. The euro appreciates in value from $1.00 per euro to $1.50 per euro.
d. The dollar price of euros increases from $1.00 to $1.50.
According to the graph shown, if this were depicting an autarky, the amount being sold domestically is:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 60.
B. 115.
C. 160.
D. 90.