The most important characteristic of the equilibrium price is that it:
a. guarantees that producers earn profit.
b. clears the market

Consider a large open economy that has a zero current account balance

What are the effects on the world real interest rate, national saving, investment, and the current account balance in equilibrium if (a) future income rises? (b) business taxes decline? (c) government purchases decline? (d) the future marginal product of capital declines?

A movement downward and to the right along a demand curve is called a(n)

a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded.