Which of the following statements is incorrect?
a. Budget deficits raise the national debt.
b. The concepts of deficit and debt are closely related.
c. Getting rid of the deficit eliminates accumulated debt.
d. Budget surpluses lower the national debt.
c
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Assuming that the value effect dominates, the current account will increase if
A) the real exchange rate decreases. B) the real exchange rate increases. C) disposable income increases. D) exports fall. E) domestic prices fall.
Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of
A) $450. B) $500. C) $600. D) $700.
Because of a recession in Japan, net exports from the United States decrease by $10 billion. If the MPC is 0.75, how much less spending will occur in the U.S. economy in the second "round" of spending?
a. $17.5 billion b. $10 billion c. $7.5 billion d. $5.0 billion
Which of the following statements about the Coase theorem is true?
a. Underlying the results of the Coase theorem is the idea that private parties can bargain without cost over the allocation of resources. b. The Coase theorem asserts that private solutions to externalities invariably lead to inefficient allocations of resources. c. The Coase theorem applies to negative externalities, but not to positive externalities. d. All of the above are correct.