An American farmer buys an irrigation system from a Norwegian irrigation company based in Oslo. To Americans, the irrigation system is a(n)

In an economy without government or a foreign sector it is always true that

A) actual saving equals actual investment. B) actual saving equals desired investment. C) desired saving equals desired investment. D) desired saving equals actual investment.

Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation

a. True b. False Indicate whether the statement is true or false