Suppose for an economy, investment = 40; saving = 50, government ...

[vicotolentino]

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]

Answer to Question 1

True

Answer to Question 2

b