Saving-Investment Diagram -Based on the Saving-Investment Diagram,if the Difference Between Values G

question 16

Multiple Choice

Saving-Investment Diagram
-Based on the Saving-Investment Diagram,if the difference between values G and E measures the net capital outflow,then ________.

• A)the difference between values G and E measures the trade surplus
• B)the difference between values H and D measures the trade surplus
• C)the domestic real interest rate is indicated by B
• D)desired saving has decreased
• E)none of the above

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision; the cost of missing out on the second best choice while selecting among several options.

Supply Of Labor

The sum of hours employees are prepared and capable of working for a specified rate of pay during a particular time frame.

Labor Supply

The aggregate amount of time laborers are prepared and capable of working at a certain salary level.

Technological Advances

Refers to the progression and innovation in technology, leading to new products, processes, or the improvement of existing technologies.