Suppose that national saving is $1456 billion, investment is $1945 billion, and private saving is $1590 billion. How much is the current account balance?

If a bank's deposits at the Fed increase by $10 million, then

A) both the bank's liabilities and the Fed's liabilities increase by $10 million. B) the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities. C) the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million. D) both the bank's assets and the Fed's assets increase by $10 million.

Refer to Figure 5-2. The private profit-maximizing quantity for the firm is

A) Qa. B) Qb - Qd. C) Qb. D) Qd.