Which of the following equations represents investment spending in a closed economy?
a. I = Y + C – G
b. I = Y – C – G
c. I = Y – C + G
d. I = Y/ (C – G)
b. I = Y – C – G
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What are the functions of “checks and balances”?
A. to limit "excessive democracy" B. to give each branch of government power and influence over the other branches C. to regulate interstate commerce D. to ensure a balanced budget
Economic theory assumes people want
A) material goods primarily. B) money in preference to all other goods. C) more of everything. D) to advance the projects in which they are interested. E) what serves selfish rather than altruistic goals.
What would happen to the budget line if income as well as prices of both goods increase by the same percentage?
A. A rightward parallel shift in the budget line B. A leftward parallel shift in the budget line C. A rightward shift in the budget line D. No shift in the budget line
Different banks:
A. may offer loans at different rates. B. all offer loans at the same interest rate. C. are mandated to follow the Fed's set interest rate. D. never offer loans at exactly the same rates.