In goods market equilibrium in an open economy,
A) the desired amount of exports must equal the desired amount of imports.
B) the desired amount of exports must equal the desired amount of imports less the amount lent abroad.
C) the desired amount of national saving must equal the desired amount of domestic investment.
D) the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad.
D
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Assume the price elasticity of demand for a good is -3. In this case, a decrease in price would result in marginal revenue of (2/3)P
Indicate whether the statement is true or false
To get personal income from national income, one must:
a. subtract out retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes. b. subtract corporate profits and Social Security taxes, and add in transfer payments and other income. c. subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes. d. subtract out corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings.