As U.S. real GDP falls, poorer households may decide to buy ________ foreign goods and assets, which would cause a(n) ________ of the U.S. dollar.
A. fewer; appreciation
B. more; appreciation
C. fewer; depreciation
D. more; depreciation
Answer: A
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A reduction in a country's rate of inflation should
A) increase its imports. B) increase its exports. C) lead to a negative trade balance. D) lead to an outflow of SDRs.
A shift to the left by the IS curve can be achieved by all of the following, EXCEPT a(n):
A) decrease in government spending. B) increase in taxes. C) increase in the foreign interest rate. D) increase in the domestic price level.
A payoff matrix shows:
A. the payoff to being a perfectly competitive firm. B. the demand curve facing a firm when there are only two firms. C. the payoffs for each possible combination of strategies. D. the payoff to being a monopolist.
An excise tax on imported items is known as a(n)
A. price ceiling. B. quota. C. export restriction. D. tariff.