Aggregate demand in an economy with no government or foreign trade is

A) consumer expenditure plus actual investment.
B) consumer expenditure plus planned investment.
C) consumer expenditure plus inventory investment.
D) consumer expenditure plus fixed investment.

B

Economics

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When foreigners purchase U.S. assets, there is an inflow of funds from abroad and this is recorded as a

A. positive item in the capital account. B. positive item in the current account. C. negative item in the capital account. D. negative item in the current account.

Economics

Suppose market demand is p = 10 - Q. Firms incur no cost of production. If firm A is the incumbent, can it deter the entry of its rival, firm B?

What will be an ideal response?

Economics