Investment spending includes spending on:
A. stocks and bonds.
B. new capital goods.
C. services.
D. consumer durable goods.
Answer: B
Economics
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Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0.
Economics
Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
a. Taxes on pollution b. Voluntary compliance c. Tradable emissions permits d. Direct controls like legal ceilings
Economics