A country has national saving of $50 billion, government expenditures of $30 billion, domestic investment of $10 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?
a. $20 billion
b. $30 billion
c. $50 billion
d. $60 billion
c
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The cross elasticity of demand between DVDs and DVD players is likely to be
a. zero. b. positive. c. negative. d. undefined.
Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $6, and is earning $240 economic profit in the short run. What is the current market price?
a. $0 b. $6 c. $10 d. $12
Refer to the diagrams. Firm A is a:
A. pure competitor and Firm B is a pure monopoly.
B. pure competitor, as is Firm B.
C. pure monopoly and Firm B is a pure competitor.
D. pure monopoly, as is Firm B.
Which of the following is the primary determinant of aggregate demand in the simplest Keynesian expenditure model?
a. consumption spending b. net exports c. investments d. government purchases