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In a closed economy savings investment is the same as the closed economy goods market equilibrium condition we know as Y C I G A True B False 2 If income exceeds absorption then the

In a closed economy, savings = investment is the same as the closed economy goods market equilibrium condition we know as Y = C + I + G.A) True
B) False
2.If income exceeds absorption, then the economy is 'consuming beyond its means.'A) True
B) False
3.In the open economy goods market equilibrium with two large countries, the sum of the absorptions must equal the sum of the incomes produced by the two countries.A) True
B) False
4.Goods market equilibrium in an open economy requires that savings equals investment plus the current account.A) True
B) False
5.If savings exceeds investment then the country is running a trade deficit where NX
B) False
6.If NX is positive then the country is consuming beyond their means and must borrow from the rest of the world.A) True
B) False
7.During the mid 2000s, the current account deficit in the US exceeded 10% of GDP.A) True
B) False
8.We argued that when the economic growth in the US is greater than the (economic) growth rates of our trading partners, the trade deficit in the US should get larger, all else constant.A) True
B) False
9.A country that intervenes in the foreign exchange market to keep their currency weak is consistent with the country being export oriented.A) True
B) False

May 07 2020 View more View Less

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