The leakage and injections approach implies that a government deficit is financed by
A) private saving less private investment plus net exports.
B) private investment less private saving plus net exports.
C) the trade deficit must always offset the government deficit.
D) None of the above.
B
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The story about the mass slaughter of buffalo in the United States, which allowed the products to be exported during the 1870s, is an example of:
a. the first-mover principle. b. the principle of comparative advantage. c. the tragedy of the commons. d. export subsidies.
The consumer price index (CPI), the personal consumption expenditures price index (PCE), and the core PCE have over the last 15 years
A) moved roughly together with the CPI being the most stable. B) moved roughly together with the PCE being the most stable. C) not moved together, with the CPI being the most stable. D) moved roughly together with the core PCE being the most stable.