In the classical model, the loanable funds market will clear when saving
a. equals investment plus government purchases minus net taxes
b. equals net taxes
c. equals investment
d. equals investment plus government purchases
e. minus taxes equals investment plus government purchases
A
You might also like to view...
The convergence theory predicts that:
A. even if countries differ in their rates of savings, population growth, and other features, they will still converge to the same growth rate, although not the same level of income. B. countries that start out poor should initially grow faster than ones that start out rich, but will eventually slow to the same growth rate. C. poor countries are not generally expected to sustain a high growth rate and surpass the existing rich countries. D. All of these are predicted by the convergence theory.
The consumption of water by local residents that may include pesticide runoff from local farmers' fields is an example of
a. market equilibrium. b. market power. c. externalities. d. laissez-faire.
Equilibrium
What will be an ideal response?
A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A. price is equal to minimum ATC B. price is below minimum AVC C. price is above minimum ATC D. price is above minimum AVC