The most volatile type of capital flow is
a. direct investment
b. long-term bank lending
c. stock market purchases
d. short-term bonds
e. none of the above is very volatile
C
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Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately
a. 10 percent b. 12 percent c. 17 percent d. 20 percent e. 25 percent
Refer to the above data. Gross investment is $8 billion, net exports are $4 billion, and government collects a lump-sum tax of $30 billion and spends $30 billion. Assume all taxes are personal taxes and that government spending does not entail shifts in the consumption and investment schedules. The equilibrium GDP will be:
A. $280 billion
B. $290 billion
C. $300 billion
D. $310 billion