Total planned expenditures in a closed economy are equal to
A. investment + saving + transfers.
B. consumption + savings + transfers + investment.
C. consumption + investment + government expenditures.
D. saving + investment + government expenditures.
Answer: C
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In pursuing a strategy of monetary targeting, the central bank announces that it will achieve a certain value (the target) of the annual growth rate of a ________
A) a monetary aggregate B) a reserve aggregate C) the monetary base D) GDP
Which of the following is the best example of a non excludable good?
A. National parks B. Cable TV C. Beer D. Television broadcast over the air
A firm is said to operate with constant returns to scale if its production cost increases by four times when its output is doubled.
Answer the following statement true (T) or false (F)
In William Safire’s 1983 essay, “Smoot-Hawley Lives,” he argues that the United States should
A. threaten retaliation if trading partners practice protectionism. B. pursue a unilateral free trade policy regardless of what others do. C. limit government’s role in the economy.