The accounting relationship between the budget deficit and the trade deficit may be expressed as ____
a. G + T = (S + I) + (X ? IM)
b. G ? T = (S + I) + (X + IM)
c. (X - IM) = (S - I) ? (G - T)
d. (X - IM) = (S + I) ? (G - T)
c
You might also like to view...
A currency drain occurs when the
A) Fed increases the required reserve ratio. B) Fed sells U.S. government securities. C) non-bank public increases its holdings of currency outside the banking system. D) banks reduce the number of loans they create with their excess reserves. E) Fed buys U.S. government securities.
Suppose that the production function is Y = AK0.35L0.65, the number of workers equals 800, the capital stock is $150,000, and real GDP is $750,000. What is the value of total factor productivity?
What will be an ideal response?
The country of Robinya has a tax system identical to that of the United States. Suppose someone in Robinya bought a parcel of land for 10,000 deera (the local currency) in 1970 when the price index equaled 100 . In 2010, the person sold the land for 100,000 deera, and the price index equaled 500 . The tax rate on nominal capital gains was 20 percent. Compute the taxes the person paid on the
nominal gain and the change in the real value of the land in terms of 2010 prices to find the after-tax real rate of capital gain. a. -20 percent b. 20 percent c. 42 percent d. 64 percent
Based on the graph showing the run-up of nominal home prices, if a person had wanted to buy a house, hold it for five years, and then sell it for a profit, which of the following years would have been the best to make the purchase in?
a. 1899
b. 1941
c. 1984
d. 2001