For a major country with extensive capital flows, what is the effect of an increase in interest rates?
A. A currency depreciation and increased net exports
B. A currency depreciation and reduced net exports
C. A currency appreciation and increased net exports
D. A currency appreciation and reduced net exports
Answer: D
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The table above shows the total product schedule for The X Firm. Decreasing marginal returns occur with the ________ worker because ________
A) 5th; the marginal product of labor for the 5th worker is less than the marginal product of the 4th worker B) 5th; the average product of labor is also declining C) 4th; output reaches is maximum D) 6th; output starts to decline E) 6th; the marginal product of labor is greater than the average product of labor
Regardless of whether a negative externality is emitted by consumers or by producers, a Pigouvian tax can be imposed on consumers only.
Answer the following statement true (T) or false (F)
An entitlement is
A) government spending on things like military salaries. B) guaranteed benefits under some government programs. C) another word for a government budget surplus. D) the payments to the private sector in exchange for goods and services.
Which of the following would shift the FE line to the right?
A. An increase in the future marginal productivity of capital B. An adverse supply shock C. A decrease in labor supply D. An increase in the capital stock