Author Question: Suppose an economy has a government budget surplus of 100, net exports of -400, and a planned ... (Read 22 times)

JMatthes · **on:** Jun 30, 2018

Suppose an economy has a government budget surplus of 100, net exports of -400, and a planned investment level of 1,000 . For this economy to be in equilibrium, saving must equal:
a. 700.
b. 500.
c. 750.
d. 250.
e. 300.

Question 2

An increase in the price of ice cream would cause a decrease in the demand for ice cream and an increase in the demand for frozen yogurt, a substitute.
a. True
b. False
Indicate whether the statement is true or false