Which of the Following Restrictions Implies That Investment Exceeds Private

question 48

Multiple Choice

Which of the following restrictions implies that investment exceeds private saving for a closed economy?

• A)The economy has no government.
• B)The economy's government is running a budget deficit.
• C)The economy's government is running a budget surplus.
• D)No restriction is necessary;investment and private saving are equal for all closed economies.

Understand and apply the principles of simple and compound interest.

Calculate the future or present value of investments at different interest rates.

Determine the economic value of payments at various times given specific interest rates.

Evaluate investment options based on interest rates and time periods.

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Definitions:

Perceptual Constancy

The brain's ability to perceive objects as unchanging despite changes in viewing conditions, such as distance or lighting.

Retinal Images

Images formed on the retina of the eye as the result of the refraction of light by the cornea and lens.

Relative Size

A perceptual cue that allows the determination of depth and distance by comparing the size of objects with known sizes.

Retinal Disparity

The slight difference in the visual images that each eye perceives because of the different angles in which each eye views the world.