If the foreign income decrease, then we might expect net export spending to:
A. increase.
B. decrease.
C. remain constant.
D. there is not enough information to determine what would happen.
B. decrease.
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The problem of inconsistent standards across nations can be managed by:
A. consumers making voluntary purchasing decisions. B. policymakers making blanket standards imposed on all imports. C. policymakers making explicit laws about imports for specific countries. D. All of these are true.
The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as:
A. Open-market operations. B. Closed-market operations. C. Discounting. D. Expansionary fiscal policy.
When the marginal cost of producing sweet potatoes equals the marginal benefit, the sweet potato producer has:
a. incurred economic losses. b. reached the optimal quantity to produce. c. minimized the total costs of production. d. avoided incurring any opportunity costs.
With which of the following countries does the United States have its largest goods and services deficit?
A. Canada. B. Germany. C. Japan. D. China.