Suppose you must pay a non-refundable $200 down payment to order a new item. Pick the true statement below
A) The $200 represents a marginal cost before you commit to the down payment.
B) The $200 represents a sunk cost after you've committed to the down payment.
C) Both A and B are true.
D) Neither A nor B are true.
C
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According to the saving and investment equation, if net foreign investment rises by $60 million
A) national saving will fall by $60 million. B) private saving will fall by $60 million. C) national saving will increase by $60 million. D) domestic investment will rise by $60 million.
When you deposit $50 in your account at First National Bank and a $100 check you have written on this account is cashed at Chemical Bank, then
A) the assets of First National rise by $50. B) the assets of Chemical Bank rise by $50. C) the reserves at First National fall by $50. D) the liabilities at Chemical Bank rise by $50.