oneforall44
New member
I. Indicate whether the statement is true or false.
1. A contraction is a period of falling real output and is usually accompanied by rising unemployment and declining business and consumer confidence.
2. A firm will make investment only when it expects to make more money from investment than holding the same amount of money at the financial institutions.
3. GDP is decreased to reflect pollution resulting from production.
4. As real interest rate increases, opportunity cost of investment decreases.
5. If the government runs budget surplus, the government can add the surplus to the savings supply.
6. If the government goes from a balanced budget to a deficit, public saving would become negative and national saving would decrease, other things equal.
7. A move toward a government budget surplus would increase national saving, reduce real interest rates, and increase investment, other things equal.
8. In an open economy, the government deficits must be financed by private savings or by foreign savings.
9. The U.S. national saving relative to GDP has been increasing since the World War II.
10. If domestic real interest rate is higher than that in other countries, capital will flow out in general.
11. Economic growth always increases our well-being.
12. Robert Solow, a Nobel prize winner in 1987, predicted that poor nations will grow faster than rich nations.
can someone tell me if i got them correct?
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. True
9. False
10. False
11. True
12. True
1. A contraction is a period of falling real output and is usually accompanied by rising unemployment and declining business and consumer confidence.
2. A firm will make investment only when it expects to make more money from investment than holding the same amount of money at the financial institutions.
3. GDP is decreased to reflect pollution resulting from production.
4. As real interest rate increases, opportunity cost of investment decreases.
5. If the government runs budget surplus, the government can add the surplus to the savings supply.
6. If the government goes from a balanced budget to a deficit, public saving would become negative and national saving would decrease, other things equal.
7. A move toward a government budget surplus would increase national saving, reduce real interest rates, and increase investment, other things equal.
8. In an open economy, the government deficits must be financed by private savings or by foreign savings.
9. The U.S. national saving relative to GDP has been increasing since the World War II.
10. If domestic real interest rate is higher than that in other countries, capital will flow out in general.
11. Economic growth always increases our well-being.
12. Robert Solow, a Nobel prize winner in 1987, predicted that poor nations will grow faster than rich nations.
can someone tell me if i got them correct?
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. True
9. False
10. False
11. True
12. True