60. Suppose that in a closed economy GDP is $10,000, consumption is $6,500, and taxes are $2,000. What value of government expenditures would make national saving equal $1,500?

(A) $3,000.

(B) $7,000.

(C) $9,000.

(D) $2,000.

61. Who would be included in the labour force?

(A) Jeremiah, who plans to travel for a few months before looking for work.

(B) Caroline, who does not have a job but is looking for work. (C) Kaylin, a full-time student not looking for work. (D) Rebecca, who has interrupted her career to raise her two children.

62. What is a problem with the geographical explanation for economic growth?

(A) It ignores Malthusian dynamics.

(B) Countires like Singapore, with unfavourable geography, are rich.

(C) Geography is the outcome of millennia of historical processes that are not fully understood.

(D) It ignores the productivity explanation for economic growth.

63. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond?

(A) 6 percent.

(B) 8.5 percent.

(C) 10 percent.

(D) 12.5 percent.