If, in a closed economy, real GDP is $30 billion, consumption is $20 billion, and government purchases are $5 billion, what is total saving in the economy?

A currency appreciation should

a. reduce net exports and therefore increase aggregate demand. b. raise net exports and therefore decrease aggregate demand. c. reduce net exports and therefore decrease aggregate demand. d. raise net exports and therefore increase aggregate demand.

The owner of a patented invention

A) may or may not have a legal monopoly. B) is guaranteed a profit since her idea cannot be copied. C) will always have demand high enough and costs low enough to ensure a profit. D) will only earn a profit if average total cost is less than price.