Which statement best characterizes the classical economists' view of saving and investment?
A) Saving exceeds investment.
B) Saving is less than investment.
C) Saving equals investment.
D) Saving and investment are not related to one another.
C
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International reserves are
A) assets denominated in a foreign currency and used in international transactions. B) reserves the Fed requires banks to hold against Eurodollar deposits. C) reserves the International Monetary Fund requires banks to hold if they wish to participate in the market for foreign exchange. D) central bank holdings of gold.
Standby letters of credit
A) are a form of swaps. B) are a promise by a bank to lend the borrower funds to pay off its maturing commercial paper. C) are a promise by a large depositor to provide additional funds to a bank should the bank face an unexpectedly large deposit outflow. D) represent the unused balance on a bank credit card.
The cross price elasticity of demand is measured by the
A) percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good. B) percentage change in the price of one good divided by the percentage change in price of another good. C) percentage change in the demand for one good divided by the percentage change in price of another good. D) percentage change in the price of one good divided by the percentage change in the demand for another good.
Gross domestic product (GDP) is
a. the total value of all goods and services produced for the marketplace during a given period, within a nation's borders b. the total value of all final goods and services produced for the marketplace during a given period, by a nation's citizens and businesses, both within a nation's borders and abroad c. the total value of all final goods and services produced for the marketplace during a given period, within a nation's borders d. the total value of all goods and services produced for the marketplace during a given period, by a nation's citizens and businesses e. the total value of all goods, services and inputs produced for the marketplace during a given period, within a nation's borders