If the price level in the United States decreases, domestic goods will become relatively cheaper than foreign goods, the demand for U.S.-made goods will increase, and the quantity of RGDP demanded will increase
a. True
b. False
Indicate whether the statement is true or false
True
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Net national savings (S=y-c-g) is realted to the balance on the CA in the following way (the current account identity):
a) national savngs (S)= the balance on the current account (CA) + gross domest product (gdp)- gross national expenditure (GNE) b) national savings (S)= domestic investment (I)+ the balance on the current account (CA) c) National savings (S)= domestic investment (I)- the balance on the current account (CA) d) net national savings (s)+ the balance on the current account (CA)+ domestic investment (I)= gross domestic product
A positive cross price elasticity of demand between two goods suggests that the goods are
A) not related. B) complements. C) substitutes. D) both of unitary elasticity.