A) I = Y + C + G.
B) I = Y - C - G.
C) I = Y - C + G.
D) I = Y + C - G.
In a closed economy,
Ans: B) I = Y - C - G.
Economics
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Intelligent policymaking requires making trade offs, which means
A) accepting unethical but unavoidable compromises. B) giving up what is less valuable for what is more valuable. C) putting one's own interests ahead of the interests of others. D) sacrificing some people's welfare to other people's welfare. E) violating someone's rights.
Economics
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Economics