If C+I+G>Y, then net exports and net capital outflow are both greater than zero

a. True
b. False
Indicate whether the statement is true or false


False

Economics

You might also like to view...

According to the quantity theory of money, in the long run

A) an increase in the quantity of money creates an increase the price level but no increase in real GDP. B) the quantity of money in the economy will always be just the right amount. C) an increase in the quantity of money creates an increase in the price level and in real GDP. D) None of the above answers are correct.

Economics

Witness the 1970s. Supply shocks such as the dramatic oil price increase explain

a. the fall in unemployment that occurred at the expense of stable prices b. the shift to the right of the aggregate demand curve c. what caused price levels and real GDP to increase d. why stagnation occurred e. why taxes, government spending, private consumption and investment increased

Economics

The principle of marginal analysis refers to:

a. a method of analysis that divides large problems into smaller, more manageable ones. b. the notion that problems facing a group of individuals can be effectively analyzed by focusing on only a small subsample of the group. c. the result that the optimal quantity of an activity is that at which marginal benefit is equal to marginal cost. d. the result that the optimal quantity of an activity is that at which the net benefit of the representative, or marginal, individual is maximized.

Economics

Which of the following statements is FALSE about the issues faced by the government when contemplating a tax?

A. Consideration must be given to how taxes influence market prices. B. Consideration must be given to how tax rates relate to the amount actually received. C. Consideration must be given to the amount of funds the government will be receiving from the transfer payments paid by the public to the government. D. Consideration must be given to how taxes influence equilibrium quantity.

Economics