In the Market Clearing Model, Nominal Saving Is

question 18

Multiple Choice

In the market clearing model, nominal saving is:

• A)the change in money + the change in bonds + the change in the nominal value of capital.
• B)nominal income less nominal consumption.
• C) + wL + i(B + P
• K) - PC.
• D)all of the above.

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Definitions:

World Price

The international market price of a good or service, influenced by global supply and demand.

Domestic Demand

The aggregate need for products and services inside a nation.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good a seller is willing to supply.

World Price

The international market price of a good or service, determined by the global supply and demand forces.