Including investment and production in the two-good, two-period model with trade

A) allows the country to equalize absorption and output demand.
B) renders terms of trade endogenous.
C) allows the country to react to changes in the interest rate.
D) allows the government to run budget deficits.

C

Economics

You might also like to view...

As this was happening the big financial institutions stopped buying subprime mortages

What will be an ideal response?

Economics

The government agency that insures deposits held in banks in the United States is

A) the Federal Bank Insurance Corporation. B) the Federal Deposit Insurance Corporation. C) the Federal Asset Insurance Corporation. D) the Federal Reserve System.

Economics