Suppose the government has a budget surplus. Then
A) private saving is less than investment and government saving is positive.
B) private saving is greater than investment and government saving is positive.
C) private saving is greater than investment and government saving is negative.
D) private saving is equal to investment.
E) private investment is greater than the sum of government saving and private saving.
Question 2
In the short run, when the Fed increases the federal funds rate,
A) the real interest rate rises and investment does not change.
B) the real interest rate is unaffected but investment still decreases.
C) the real interest rate rises and investment decreases.
D) there is no effect on investment because investment depends on the real interest rate.
E) the real interest rate falls and investment increases.
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Private Practice Massage Therapy Business Plan
Reaction 3: The Second Investment of ATP
Growth of Government Spending, 1870–2009
Solow Model with Saving Dependent on Income Level
Suppose a country imports televisions. The country's supply and demand curves are shown in ...