The Equilibrium Level of National Income in an Open Economy

question 1

Multiple Choice

The equilibrium level of national income in an open economy is given by:

• A)I + X = S + M
• B)X - M = S - I
• C)I + (X-M)= S
• D)all of the above

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Definitions:

Weber's Law

A principle in psychology stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Afterimage

An afterimage is a visual impression that persists as a negative or positive image on the retina after the stimulus that caused it is no longer present.

Red Square

A famous city square in Moscow, Russia, known for its historical buildings and for being a symbolic center of the Russian government.

White Surface

A surface that reflects most wavelengths of light, appearing white to the human eye.