Author Question: Suppose for an economy, investment = 40; saving = 50, government spending + exports = 100; and taxes ... (Read 92 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
Suppose for an economy, investment = 40; saving = 50, government spending + exports = 100; and taxes + imports = 110 . Then for this economy, total leakages exceed total injections by 20, so there will be pressure for the economy to contract.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following would shift the demand curve for gasoline to the right?
 a. a decrease in the price of gasoline
 b. an increase in consumer income, assuming gasoline is a normal good
  c. an increase in the price of cars, a complement for gasoline
 d. a decrease in the expected future price of gasoline



Qarqy

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

True

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

For a complete list of videos, visit our video library