Unintended changes in inventories:
A. cause the economy to move away from the equilibrium GDP.
B. are treated as components of consumption.
C. bring actual investment and saving into equality only at the equilibrium level of GDP.
D. bring actual investment and saving into equality at all levels of GDP.
D. bring actual investment and saving into equality at all levels of GDP.
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If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?
A) a decrease in oil prices B) a decrease in government purchases C) a decrease in taxes D) an increase in the money supply and a decrease in interest rates
The Baker Plan emphasized renewed commercial bank loans as a way to restart capital flows to Latin America
Indicate whether the statement is true or false