In the classical model, desired saving
A. is equal to desired investment.
B. is less than desired investment.
C. exceeds investment.
D. is inversely related to real income.
Answer: A
You might also like to view...
If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is
A) 78.6 percent. B) 71.4 percent. C) 64.3 percent. D) 66.6 percent.
"A country that initially has a floating exchange rate and a high inflation rate can use a shift to a fixed exchange rate as part of its effort to lower its inflation rate." Is the statement correct? Why or why not?
What will be an ideal response?
Monopolistically competitive firms offer consumers more variety than perfectly competitive firms.
Answer the following statement true (T) or false (F)
Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A. new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts. B. national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies. C. jobs at home should be protected from cheap foreign labor. D. protectionism increases total domestic consumption possibilities.