A country's current national savings and investment identity is expressed in algebraic terms as (M – X) = I – S – (T – G). In this instance,
a. domestic investment is higher than domestic savings.
b. domestic savings exceed domestic investment.
c. the country is experiencing a trade surplus.
d. government savings are excluded.
a. domestic investment is higher than domestic savings.
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An internal economy means that ________, while an external economy means that ________
A) firm costs fall as firm output increases, firm costs fall as industry output increases B) firm costs fall as industry output increases, firm costs fall as firm output increases C) firm costs fall as firm output increases, firm costs rise as industry output increases D) firm costs fall as industry output increases, firm costs rise as firm output increases
One of the main functions of banks is
A. Maintaining a constant money supply. B. Borrowing money and lending to savers. C. Ownership of projects in which they invest. D. Creating money.