The uses-of-saving identity shows that if the government budget deficit rises, then one of the following must happen
A) Private saving must rise, investment must fall, and/or the current account must fall.
B) Private saving must rise, investment must fall, and/or the current account must rise.
C) Private saving must rise, investment must rise, and/or the current account must fall.
D) Private saving must fall, investment must rise, and/or the current account must rise.
A
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The benefit from an additional unit of a good or service that the consumer of that good or service receives is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) opportunity cost.
Suppose the reserve ratio is RR. Then
A) required reserves = RR × deposits. B) required reserves = RR × loans. C) required reserves = RR × actual reserves. D) required reserves = RR × excess reserves.