A nation's investment must be financed by
A) national saving only.
B) national saving plus borrowing from the rest of the world.
C) the government's budget deficit.
D) borrowing from the rest of the world only.
Correct Answer:
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Q5: According to the Ricardo- Barro effect, government
Q6: In January 2010, Tim owned machines valued
Q7: Suppose the real interest rate rises and
Q8: Gross investment
A)includes only replacement investment.
B)is the purchase
Q9: National saving is defined as the amount
Q12: If the government runs a budget deficit,
Q13: If households' disposable income decreases, then
A)households' saving
Q14: Which of the following is true regarding
Q15: The crowding- out effect refers to
A)government spending
Q51: People expect an inflation rate of 5
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